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NUSA DUA, Indonesia - Chinese Finance Minister Xie Xuren said on Monday the government was working to
boost domestic demand to counter the financial crisis, although the economy faced "daunting challenges".
"The Chinese government's basic approach is to expand domestic demand, particularly consumer demand, to promote growth," he told the annual meeting of the Asian Development Bank on the Indonesian resort island of Bali.
"These macroeconomic measures are paying off and positive signs have shown in the economy, better than anticipated."
However, Xie said much needed to be done still.
"The People's Republic of China still faces daunting challenges such as a sharp decline in exports, over-capacity in
some industries, slow recovery in industrial growth, drop of economic returns, reduction in fiscal revenue and severe pressure on employment," he said.
He said the government would take measures to ensure stable growth.
Xie's comment comes after data has shown signs that the world's third-biggest economy may be on the road to recovery from the global financial downturn.
In the latest evidence, a purchasing managers' index produced by brokerage CLSA rose in April to a nine-month high and suggested for the first time since July 2008 that the manufacturing sector was expanding.
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