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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 183

China Business Intelligence No. 183

Samsung Economic Research Institute Beijing Office

Dec. 13, 2010

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The 12 th Five-Year Plan gives priority to economic stabilization through the expansion of domestic demand. The Chinese government for the first time set boosting domestic demand as an independent goal in the 12 th Five-Year Plan. The Plan's domestic demand expansion revolves around economic restructuring, optimization of investment structures, etc. While maintaining sustainable economic growth, China will reinforce the continuity and consistency of macroeconomic policies. Setting the expansion of consumption as a key point in the domestic demand expansion strategy, China will work towards ramping up the purchasing power of residents living in cities and rural areas and upgrading consumption structures in a way that will protect consumer rights. China's shift in its economic growth model to domestic demand expansion will present opportunities to multinational companies but also demand strategic switches from them as well.

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