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Countryside key for boosting domestic demand - official

(Xinhua)
Updated: 2009-01-07 17:04

BEIJING  -- China's rural areas have the biggest potential in boosting domestic demand, said Chinese Vice Premier Wang Qishan during visits to the countryside concluded on Tuesday.

Related readings:  China's economy likely to accelerate in 2H of 2009  Mobilizing to embrace the future  China should pursue new growth model  Stimulus sops up farmland

China should "especially place priority on tapping the rural market and developing the countryside" when spreading global financial crisis blunted the country's economic growth, said Wang.

He made the remarks when visiting towns, rural stores and farmers in central China's Henan Province on Monday and Tuesday.

More chain stores should be set up in the countryside to facilitate rural consumption, Wang said.

He also urged local officials to well implement policies to subsidize farmers' purchase of home appliances.

Financial institutions should develop more services targeting the need of farmers and rural enterprises, he said.

In its latest effort to boost rural consumption, China has decided to roll out a 13-percent subsidy nationwide for farmers who buy home appliances, starting from Feb. 1.

China has announced a 4 trillion-yuan (586 billion US dollars) fiscal package to stimulate domestic demand.