China continues to adjust growth model in 2010

Let's take a closer look at one aspect of macro-economic policy mapped out for the year ahead. CCTV reporter looks at shifts in the structure of the growth model to give an added boost to domestic consumption.

China has pledged to maintain the consistency and stability of its economic policies for next year. It will stick to a proactive fiscal policy and a moderately easy monetary stance in 2010. Experts point out that maintaining economic growth is the priority for this year, while promoting economic restructuring will be the major focus of 2010.

Zhang Liqun, Senior Researcher of Dev't Research Center of the State Council said "The structure of urban and rural development, the structure of industries and the structure of income distribution should all be adjusted and improved."

Another trend for 2010 will be continued moderate rises in investment. But this will be more directed at finishing projects under construction than at breaking ground on new projects. Experts say strict control of investment shows determination by the central government to speed up adjustment of economic structures.

Zhu Baoliang, Chief Economist of State Information Center said "Behind the structural problems there are also systemic problems. We must strengthen reforms, including reforms in energy pricing and taxation."

The government will also work to adjust the economic growth model, by magnifying the role of domestic demand.

In addition, the central government will make it easier for rural migrant workers to settle in cities as a way of promoting urbanization. The country will further develop smaller cities, meaning more benefits to the residents as well as more business opportunities for foreign investors.