Saturday, October 18, 2008
China stokes the engine
The message from China is clear. It is determined to keep growth at a high level especially now that it is in a position to dominate the world economy. Today it confirmed more of its rural strategy aimed at stimulating growth and wealth in its rural economy. The government will substantially boost consumption of rural residents and eliminate absolute poverty in rural areas by 2020, said a communique issued at the conclusion of the CPC.Per capita rural disposable income in 2007 was 4,140 yuan ($605), a year-on-year gain of 9.5 percent in real terms. A rise of at least 6 percent is expected this year, according to the government annual report issued in March. The rural population mired in absolute poverty was reduced to 15 million last year, down from 250 million in 1978.The country faces challenges in rural development and reform, but will firmly push forward with the task, the communique said. The rural areas have the capacity to keep China's economic development on the boil by stimulating local demand for domestic production.