China’s leaders pledged to accelerate a shift in the nation’s growth model in 2011 and also focus on stabilizing prices after an annual meeting in Beijing to set economic policy guidelines. The government is seeking to shift from dependence on investment in industry and exports to bolstering private consumption and service industries, a move that could also aid the world economy. The nation is tightening monetary policy to cool inflation that accelerated to 5.1 percent in November, the fastest pace in 28 months.
The government will seek to boost revenue and “resolutely” cut spending. Officials aim to balance “stable and relatively fast” growth with adjusting the economic structure and managing inflation expectations, the report said. The nation needs to strengthen consumption as part of speeding change in the growth model. The China central bank raised lenders’ reserve requirements on Dec. 10 as part of efforts to tame liquidity and cool prices. The government will “further prioritize overall price stability,” Xinhua reported.
In 2011, the main tasks will include strengthening macro-economic controls; ensuring the supply of agricultural goods; altering the growth model; improving basic public services; and continuing to “open up” and promote global cooperation, the report said.
U.S. lawmakers and officials say a stronger Chinese currency would help to reduce global trade imbalances, boost private consumption and contain inflation.
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