China's challenge: Up domestic demand

The downturn in global demand since the outbreak of the financial crisis prompted China and Asia's other export-led economies to realize that they must carry out economic restructuring and seek new areas of growth, such as expanding domestic demand, for future sustainable development.

China faces severe challenges in the process of economic restructuring. The nation has put much emphasis on government spending and investment during the financial crisis to stimulate the economy, but domestic consumption is still weak.

China's GDP growth was 8.7 percent last year, mainly thanks to the government's massive stimulus package, which is heavily investment-orientated.