China's leaders vow to keep stimulus, easy credit

China's leaders wrapped up an annual strategy meeting Monday vowing to keep economic stimulus and easy credit policies in place to support a stable recovery, while improving the quality of the country's often chaotic economic growth.
The meeting in Beijing, presided over by President Hu Jintao and Premier Wen Jiabao, ended as expected with calls to ensure the recovery from the global crisis remains stable, the official Xinhua News Agency said in dispatches posted on the government's main Web site.

Officials attending the three-day Central Economic Work Conference agreed that the global slowdown had added to the urgency for China to adjust its model of economic growth, which many economists say is excessively dominated by state-led industries, rather than more sustainable, consumer-led demand. China's economy is forecast to grow 8.3 percent this year, after dipping to a low of 6.1 percent in the first quarter and since recovering to 8.9 percent in July-September.

Like other major economies, China remains wary of pulling back from stimulus policies put in place late last year, given the weakness of key export markets in the U.S. and Europe, where unemployment has continued to rise despite signs the worst of the crisis may be past. To counter the slump in exports, Beijing announced a 4 trillion yuan ($586 billion) stimulus package and urged state-controlled banks to lend lavishly to support a slew of public works projects.

Now, the emphasis is shifting to promoting consumer spending and private investment -- drivers of domestic demand that are seen as crucial for future growth. While consumer demand has remained resilient despite the slowdown earlier in the year, it still accounts for less than half of China's economic activity -- well below the levels in many other major economies.