The promise came at the end of a key annual economic meeting chaired by President Hu Jintao that sets the policy tone for the coming year, Xinhua news agency said.

Typically, few specific targets or spending measures are announced during the Central Economic Work Conference, and no major changes emerged on Monday.

But a continued stimulative approach will likely be welcomed by markets amid increasing recognition that China has become a key engine of global growth, especially as developed nations struggle to recover.

"We must maintain the continuity and stability of our macro-economic policy and continue to implement a proactive fiscal policy and a moderately loose monetary policy," Xinhua said in a report quoting key points from the meeting.

Leaders, who also included Premier Wen Jiabao, pledged to promote domestic consumption to lessen the country's reliance on exports, which plummeted when key markets like the United States tipped into recession.

China last year unveiled a four-trillion-yuan (586-billion-dollars) stimulus package along with big tax breaks to boost domestic spending as the global slump bit.

"While seeking to expand domestic demand, we must especially lay importance on increasing consumer demand of the people," Xinhua quoted the meeting saying.

At the same time, the government would seek to revive exports while also boosting imports to promote "balanced international trade," Xinhua said.

The government would seek to stabilise foreign demand for China's exports, diversify the export base, and "tap into new markets," it said.

The meeting warned of existing structural imbalances in China's economy, the need to bolster a weak rural base and a "serious" unemployment situation.

"2009 will be one of the most difficult years for our nation's economic development in this century," the report said.

China would also encourage its companies to "invest overseas and expand their business."

China's exports are politically sensitive overseas due to huge trade surpluses with key trading partners such as the United States, amid accusations Beijing keeps the value of its yuan currency low to make its exports cheap.

Xinhua's report made no mention of foreign exchange policy.

The decision also called for greater efforts to encourage "urbanisation", which analysts said could lead to policies supporting the real estate sector.

The key Chinese share index in Shanghai closed 0.45 percent after news of the meeting emerged.

China's economy grew 8.9 percent in the third quarter -- the fastest pace in a year. The World Bank upgraded its 2009 growth forecast for China last month to 8.4 percent, citing the public spending but saying more domestic demand was needed to ensure a sustainable recovery.

China's stimulus policies have sparked concerns of potential overheating and inflation, with even the government warning of overcapacity in some key sectors.

But analysts said continued risks in the global economy meant drastic policy change was unlikely for now.

"The government will not rush into policy changes. It may worry that too hasty an exit (from stimulus policies) would instead undermine the hard-earned results of the stimulus package," said Jason Xu, an economist with China International Capital Corporation.

Share This Article With Planet Earth

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Related Links
Global Trade News

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News