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World Bank Official Says China Should Rely More on Domestic Consumption

China should take measures to expand its domestic consumption instead of relying too much on investment and exports, Dr. David Dollar, the World Bank country director for China, said in Beijing Friday.

Economic restructuring would be the toughest task facing the government next year, he said.

China's economic growth would slow slightly next year, he said.

The Washington-based bank said in its latest Quarterly Update that China's gross domestic product would grow by 10.4 percent this year, and predicted a 9.6-percent growth next year.

Dollar said they were optimistic about next year's economic growth.

The economic focus should be moved gradually to the domestic market, he said. The government needed to improve its medical insurance and social security system so as to let its people spend more money in consumption.

In December, China would mark the fifth anniversary of its WTO (World Trade Organization) entry, which had a higher than expected impact on both the country and the world.

During the five years, China had maintained a growth rate around 10 percent, with the world economy had also developed well, with 2004 recording the highest growth rate in 30 years, he said.

Although China's WTO membership was not the only factor in the fast economic growth of the world and China, it played a very important role, said Dollar.

(Xinhua News Agency December 4, 2006)


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