China government is determined to stimulate domestic consumption to boost China economyChina government announced to postpone the EU-China Summit on Nov 26, 2008 in less than one week’s notice - A Summit has been conducted for 11 consecutive years. Premier Wen Jiabao arranged another visit during 2009 Lunar New Year to Europe and deliberately not included France in his visit… We just want to comment on the implication on China economy for this incidence, not the political side of this...Obviously the postponement of this Summit, at a time when the world calls for very close cooperation on tackling the global financial crisis, has special economic meanings behind… China government has announced plans to stimulate domestic consumption. China has known to be the world factory, instead of having products exported; but, supplied and consumed domestically, would be a new economic model for China. China is a developing country with large population, ample land and huge government capital / personal savings that hunger for construction of infrastructure and improvement of quality of life. If China is successful in triggering domestic consumption, the losing of China market for the European countries will be detrimental… We would like to point out the China government always willingly sacrifices economic benefits when the political issue touches upon basic national principles. For instance, China sovereignty would be non-negotiable…
From China economy point of view, the China government is serious about the domestic consumption stimulus. What will be your action to ride on the wave?
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