China Economy Prospects 2012: Boosting Domestic Demand

【 Media Coverage 】 Release Date : 2011-12-11 Author : Chloe Editor : Jaime Source : Xinhuanet Beijing

More than three years ago, the international financial crisis struck suddenly, the global economic turmoil was sluggish, and the Chinese economy responded calmly and effectively.

Three years later, the crisis is still fermenting, the European debt crisis has evolved in depth, and the Chinese economy is once again facing a new test.

"Currently, China's development is still in a period of important strategic opportunities and has many favorable conditions." The Politburo meeting held on the 9th emphasized this when analyzing and studying economic work in 2012.

Distance tests a horse's stamina; time reveals a man's heart. Against the background of the increasingly complex global economic situation, China's economy, which is about to enter 2012, is preparing for its response and is firmly confident in planning a new round of development. In order to expand domestic demand and seek development to resist internal and external troubles, Chinese also need to rely on the strong domestic demand momentum of the Chinese economy, which is the foundation of a strong economy.


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"It's still booming before August, but the sales fell later in September. The Group's export volume has dropped by about 30% month-on-month." Tim Liang, Chairman of Crowntyre Industrial, who often visits Europe and the United States to investigate market conditions, saw the severity of the European debt crisis. "The situation is still grim next year and we must make long-term preparations!"

Turning the business focus to domestic market is a powerful measure for Tim Liang to deal with the bleak season. During the international financial crisis, Crowntyre Industrial began to switch to the domestic market and opened a tire retail and car service chain Tirecool. The number of Tirecool depots have reached 9 in major Chinese cities such as Qingdao and Beijing. "Since this year, the company’s sales have achieved 400% year-on-year growth, and the group will be more inclined to domestic business in the future.”


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Expanding domestic demand is a valuable experience of the Chinese economy in effectively responding to the international financial crisis, and it is also a "magic weapon" to deal with the current complex challenges.

In order to expand domestic demand and seek development to resist internal and external troubles, China must also rely on the strong domestic demand momentum of the Chinese economy, which is the foundation of an invincible economy.


Source: Xinhuanet Beijing