China still officially projects 8 percent GDP growth this year, a pace that many Chinese officials and analysts believe is the minimum needed to create enough jobs and maintain social stability.
Since October, the government has announced several aggressive measures to bolster domestic demand and increase investment. These included a 4-trillion-yuan (about 585 billion U.S. dollars) stimulus package, a plan to expand rural ownership of home appliances, support plans for key industries and the issue of 3G licenses, among others.
Even so, Pei said there would still be many difficulties in achieving 8-percent growth through increasing domestic demand, such as how to better tap the rural consumption market and spur private investment.
The two parliamentary sessions would provide the chance for lawmakers and political advisors to exchange views and make proposals, he added.
The government has pinned its hopes for an economic revival on stronger rural demand as exports fall. In its first policy document of the year, issued Feb. 1, the central government said the biggest potential for boosting domestic demand was in rural areas.
Pei, a farmer-turned entrepreneur, said more rural consumption would only occur if farm incomes rose, which was doubtful this year given the swelling ranks of returning jobless migrants and falling world commodity prices.
Official statistics indicate that more than 20 million rural migrants, 15.3 percent of the 130 million migrants working outside their hometowns, had returned home without jobs.
"Without higher incomes, farmers will certainly tighten their belt. So it is important to create more jobs for migrant workers. The government needs to do more, and so do enterprises. The problem is how," Pei said.
Pei has a specific interest in knowing when the economy might rebound, because he plans to build another cement production line at an estimated cost of 300 million yuan.
HOT TOPIC AT LOCAL LEVEL
At recently-concluded sessions of provincial-level people's congresses and people's political consultative conferences, the expansion of domestic demand was a hot topic.
Lawmakers and political advisors offered motions and proposals, such as increasing regional cooperation, cutting corporate tax rates, raising investment in education and health and handing out consumption coupons.
At Beijing's parliamentary sessions in mid-January, organizers held a seminar for top city officials and more than 200 political advisors. They also offered suggestions on boosting consumption and encouraging investment.
Among the attendees was Li Zhe, president of the property developer Riverside Group, who proposed a "patriotic consumption campaign" to boost domestic demand under which the public would be urged to spend its entire income for a year without saving anything.
Combating the economic downturn and boosting domestic demand also got much attention at Guangdong's parliamentary sessions earlier this month.
"How to deal with the economic crisis and company closures are the most worrisome issues among deputies to the congress," said deputy Tan Yanhong, vice general manager of retailer Guangzhou Grandby Co.
Guangdong governor Huang Huahua said the province had been the hardest hit by the financial crisis, and this year it would have to pull out all the stops to boost domestic demand and increase investment.
(Xinhua News Agency February 23, 2009)