President Hu Jintao and Premier Wen Jiabao addressed at the annual conference that policymakers plan to boost domestic demand and carry out economic restructuring to maintain a sound economic growth amid the deepening global financial crisis.

Under the worsening global economic situation, the World Bank was forced to cut its growth forecast for the world economy from 1 percent to 0.9 percent next year. And the global trade volume would decrease by 2.1 percent, it said.

To tackle the crisis, the government has put creation of jobs and improving people’s livelihood on top of its agenda, the CEWC said. A China Central Television (CCTV) report said the government would increase its spending on rural development, education, services, healthcare, social security, job creation, environmental protection and technological innovation.

To boost domestic demand and minimize the impact of the crisis, last month the government announced a $586-billion stimulus package on November 9th and cut down the interest rate by 1.08 percentage points, the highest in 11 years.

While maintaining its proactive fiscal policy and moderately relaxed monetary policy, the country will implement a “flexible and careful” macroeconomic regulation to ensure that the economy achieves positive progress next year, the conference said.

The country will aim for a “stable and healthy” development of the capital and real estate markets after its major stock indices have fallen by more than two-thirds since late last year and property sales dropped dramatically in some cities, it said.

The top leadership expressed confidence in bolstering economic growth, saying the country has been able to minimize the impact of the global financial crisis.

“The only thing we have to fear is fear itself,” Premier Wen told the CEWC, quoting former US president Franklin D. Roosevelt’s words during the Great Depression, according to sources. “China has the ability to overcome difficulties,” Wen said.

Analysts widely expect the government to set an 8 percent GDP growth target for next year.

This is somewhere between the World Bank’s prediction of 7.5 percent and the country’s top think tank, Chinese Academy of Social Sciences’ forecast of 9.3 percent.

Despite the World Bank forecast of 7.5 percent GDP growth for China next year, its chief economist Justin Yifu Lin told Xinhua that the country could manage to achieve an 8 percent growth.

“It would be more realistic to put the growth forecast at 8 percent, given the gloomy global situation and China’s determination to boost its economy,” said Dong Yuping, senior economist with the Institute of Finance and Banking of the social sciences academy. “It will depend on the effect of the country’s stimulus package.”

The conference emphasized that more efforts should be made to “solve problems related to interests of ordinary people, so as to maintain social stability”. And all measures taken will ultimately target improving people’s living standard, they said.

Despite the global financial crisis, important opportunities for China’s economic and social development still exists, participants at the conference said, “It would not be reversed by ongoing global financial woes”.

In this regard, expenditures in public areas will be “substantially increased” and those in major areas guaranteed.

The conference agreed that wide-ranging measures should be taken to improve the social welfare system both in urban and rural areas.

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Located in Pengze in the Jiujiang city of Jiangxi province, the project is a move of China’s policy to boost the domestic demand.

The project which is a 60-billion-yuan construction is among China’s first batch of inland nuclear power projects, with the other two in Hubei and Hunan provinces.

According to the provincial government’s website, 865 large-sale projects have been planned by Jiangxi with the total investment of 672.3 billion yuan, including the preparation work for the Pengze project.

Pengze is chosen to be the place building nuclear plant in for its natural advantage. On the shore of the Yangtze River, Pengze has abundant water resources to meet the demand of nuclear projects.

The abundant uranium in Jiangxi province accounted for one third of the total amount of China.

To solve the problem of power shortage in eastern and central regions, China should develop nuclear power projects both in coastal areas and inland provinces, said analysts.

China Guangdong Nuclear Power Group and China National Nuclear Corp are examples leading the way of strengthening cooperation between south and north.

China Guangdong Nuclear Power Group last year signed an agreement with the Hubei provincial government to plan for a nuclear plant in Dafan. China National Nuclear Corp has also signed an agreement with the Hunan provincial government to plan for a nuclear project in the Yiyang city on the bank of Taohuajiang River.

China may accelerate the construction of nuclear projects in the next few years because it has begun to boost the domestic demand, said an analyst.

China’s construction of a series of large energy projects should have started this year. The projects include three nuclear power plants with a total of 101,000-MW reactors, respectively located in Fuqing in Fujian, Fangjiashan in Zhejiang and Yangjiang in Guangdong, according to the National Development and Reform Commission (NDRC).

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Because of the moves of stimulating investment and consumption, it is believed that the GDP growth could get 9% next year—with 70% possibility.

Wang Tongsan, a senior economist also holds the same opinion, he said the growth might be higher.

According to the economic forecast research team, the growth rate in economy next year will be 9.3%, which is higher than those made by international organizations.

The World Bank said last month that although they expect China can have 9.4% growth this year, China’s growth may slow to 7.5% next year, the lowest since 1990, as the global financial crisis would affect more on economy in 2009.

The whole world is paying attention to China’s next year’s growth. An Organization of Economic Cooperation and Development report said China’s growth next year could be 8%, while the International Monetary Fund put it at 8.5%.

Chinese Academy of Social Sciences (CASS)’s Wang said the stimulus package and moves from government will make next year different. They believe the policies to spur domestic demand will work well and bring impressive effect.

Local government have promised to follow the central government’s steps to give a hand helping stop the national economy from sliding further after it registered an annualized 9% growth in the third quarter of this year.

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