Hu: Economy to shift towards consumption

Chinese president Hu Jintao said that the country will increase consumption and imports to re-balance the structure of its economy, the Wall Street Journal reported. Hu, speaking at the annual Boao Forum on China’s Hainan island, said that it “will let imports play a key role in balancing China’s macroeconomy and adjusting our economic structure to promote trade balance.” Hu’s remarks are the latest in a series by government officials stressing the need to re-balance China’s economy towards imports and consumption. In late January, Chen Deming, the commerce minister, said that China is looking to double its imports within five years. China recorded its first quarterly trade deficit since 2004 this year, but many economists and pundits argue that major shifts cannot occur without a more rapid appreciation of the renminbi.