China to push domestic consumption and reform

Despite the recent uptick in the Chinese economy, the country still faces some tough hurdles. As a result, China's top economic planner is rolling out new policies to boost domestic consumption and push forward new reforms for next year.

Zhang Ping, chairman of the National Development and Reform Commission, China's top economic planner, says that China's economy will face four challenges in 2013: stabilizing the economy, accelerating business transformation and improving industrial quality and efficiency. He also points out more efforts are needed to improve rural incomes.

Zhang Ping said, "The fundamentals and potential of our economy are relatively good. But we still need to pay attention to the complexity of the economic situation in the new year."

Price reform is on top of the economic agenda for 2013. Zhang says the central government will adopt reforms to electricity prices and medical insurance.

Zhang Ping said, "We will improve the medical insurance payment system and further promote the social healthcare system."

Boosting domestic consumption is another priority. Zhang says the government will especially encourage the sales of clean energy cars and solar products and roll out more measures to spur consumption in areas such as e-commerce and on-line shopping.

Zhang Ping said, "The incomes of urban and rural residents should increase hand in hand with the national economy. The government should also deepen reforms in income distribution and boost the incomes of rural residents through multiple channels."

Higher incomes, consumption friendly policies and a better social welfare system may help China counter economic headwinds in 2013.