July 10, 2012 / 9:50 AM / 6 years ago

China's Wen says investment key to bolster growth

BEIJING (Reuters) - China must maintain a reasonable investment growth to spur the world’s second-largest economy and stand up to the headwinds from global economic uncertainties, Premier Wen Jiabao said in remarks published on the government’s website on Tuesday.

Wen made the comments in meetings with economists in banks and businesses to discuss current conditions in the Chinese economy and the policy settings needed to reinvigorate growth.

China’s economy is facing increasing challenges at home and abroad, with the latest economic data pointing to a softening domestic demand, coupled with uncertainties from external economic downturn.

“The measures to stabilize economic growth include boosting consumption and diversifying exports, but currently, what is important is to pursue a reasonable growth of investment,” Wen told economists in two meetings on Monday and Tuesday.

“Stabilizing economic growth is not just an urgent task at the moment, but also an arduous task over the long term,” Wen said.

But Wen stressed that the government must monitor the “quality and efficiency” of investment to guarantee a sustainable development of the economy.

On Tuesday China reported that June imports rose at only half the pace expected while consumer and producer prices eased further last month.

Investors are now looking ahead to China’s second quarter gross domestic product data due on Friday.

Wen added that Beijing must strike a balance between maintaining economic growth and making long-pledged reforms to financial markets, the fiscal system and competitiveness, including pushing tax reform in selected sectors.

Reporting by Aileen Wang and Kevin Yao; Editing by Ed Lane

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