Wednesday, December 29th, 2010
China’s Hu Seeks Price Stabilization and Job Creation in 2011
Chinese President Hu Jintao says that stabilizing prices and creating more jobs will be key concerns for the Chinese government in the coming year.
Mr. Hu told Communist Party leaders and academics on Wednesday that while dealing with short-term economic issues, China needs especially to create a long-term mechanism to boost domestic consumption. China's economy now significantly depends on overseas exports, especially to the United States.
Mr. Hu's comments came after Premier Wen Jiabao acknowledged last Sunday that rising costs have made life more difficult for millions of low-wage earners in China.
Domestic food prices have risen sharply this year, and were12 percent higher in November than a year earlier. That helped push inflation up to 5.1 percent last month, well above the government's full-year target of three percent.
Cities and provinces across China have been boosting minimum wages because of inflation and concerns about the growing gap between the working class and newly wealthy business elites. Beijing says it is raising its minimum wage for workers in the capital by 20 percent on New Year's Day, to about $175 a month.
Mr. Hu said the government needs to “pay more attention to protect and improve people's livelihood.” He also said traditional industries need to be upgraded and the development of services needs to be enhanced, but did not indicate how that goal would be met.
China’s Hu Seeks Price Stabilization and Job Creation in 2011
Chinese President Hu Jintao says that stabilizing prices and creating more jobs will be key concerns for the Chinese government in the coming year.
Mr. Hu told Communist Party leaders and academics on Wednesday that while dealing with short-term economic issues, China needs especially to create a long-term mechanism to boost domestic consumption. China's economy now significantly depends on overseas exports, especially to the United States.
Mr. Hu's comments came after Premier Wen Jiabao acknowledged last Sunday that rising costs have made life more difficult for millions of low-wage earners in China.
Domestic food prices have risen sharply this year, and were12 percent higher in November than a year earlier. That helped push inflation up to 5.1 percent last month, well above the government's full-year target of three percent.
Cities and provinces across China have been boosting minimum wages because of inflation and concerns about the growing gap between the working class and newly wealthy business elites. Beijing says it is raising its minimum wage for workers in the capital by 20 percent on New Year's Day, to about $175 a month.
Mr. Hu said the government needs to “pay more attention to protect and improve people's livelihood.” He also said traditional industries need to be upgraded and the development of services needs to be enhanced, but did not indicate how that goal would be met.
