Vice Premier stresses domestic demand, stabilizing growth Chinese Vice Premier Li Keqiang (2nd R) talks with a researcher in Suzhou, east ...

Vice Premier stresses domestic demand, stabilizing growth

Chinese Vice Premier Li Keqiang (2nd R) talks with a researcher in Suzhou, east China's Jiangsu Province, May 22, 2012. Li has inspected the province from May 21 to 22.(Xinhua/Rao Aimin)

Chinese Vice Premier Li Keqiang (front) insepcts the growth situation of wheat in Shibei Village of Zhoushi Township in Kunshan City, east China's Jiangsu Province, May 21, 2012. Li has inspected the province from May 21 to 22.(Xinhua/Rao Aimin)

Chinese Vice Premier Li Keqiang has called for expanding domestic demand in order to stabilize economic growth amid the uncertainty and instability of the world economy.

During an inspection tour in eastern Jiangsu Province from Monday to Tuesday, Li reiterated that China's economy is "generally stable," but the global environment is becoming complicated.

Li noted that China has great domestic demand potential and needs to properly maintain a balance between ensuring steady and robust economic development, adjusting the economic structure and managing expectations on inflation.

He repeated the government's policy stance of continuing proactive fiscal policy and prudent monetary policy.

"While exploring international markets, we need to focus more on domestic consumption," Li told officials and entrepreneurs from Jiangsu Province after being updated on the local economy at a meeting.

When expanding domestic demand, the vice premier said, local governments should prioritize livelihood-related projects concerning job creation, government-subsidized housing construction, medical reform and social security.

He said accelerating industrial transformation and upgrading is an effective way to expand domestic demand and stabilize growth, which is also the key to maintaining China's long-term, steady and rapid development.

Government departments should promote economic restructuring, support the real economy and close down more out-dated production facilities.

During his inspection tour, the vice premier also urged local governments to fully implement the policy of strengthening the agricultural sector and benefitting farmers, so as to steadily increase the country's grain production capacity and ensure that farm produce supplies can support stabilized economic growth.