Hu pledges to boost domestic consumption

President Hu Jintao on Friday promised to boost China’s domestic consumption and reduce its reliance on exports, but stressed that the world must continue to push for trade liberalization, the Financial Times reported. Addressing the Asia Pacific Economic Cooperation summit in Singapore, Hu said it was important to entrench new sources of growth given that the global economic recovery was not yet certain. He also spoke out against protectionism, highlighting “the unreasonable trade and investment restrictions imposed on developing countries.” China’s economy has rebounded impressively this year, prompting the IMF to increase its growth projections to 8.5% in 2009 and 9% in 2010. However, there are fears that growth might slow once the stimulus measures wear off. Hu said China had been working hard to improve domestic consumption – widely seen as the key to long-term sustainable growth – through structural tax cuts and addressing issues such as medical care, housing and old-age support.