Balanced development

In the face of challenges posed by the financial crisis, we should maintain a proper balance between production and consumption, and between investment and consumption, says an article in the People's Daily. The following is an excerpt.

The challenges China's economy is confronted with also bring us a rare opportunity. The key issue is how we can handle them - how we can maintain a proper balance between production and consumption, and between investment and consumption.

For years, China's economy was fueled by investment, especially huge investments in the secondary sector that consumed large amounts of resources and energy. But this will not make development sustainable. That poses the problem of total supply greatly exceeding total demand. That is to say, the growth mode that separates investment from consumption is problematic.