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Policy advisor: 4-trillion-yuan stimulus is not enough

By Cui Xiaohuo and Li Weitao (chinadaily.com.cn)
Updated: 2009-03-04 14:19

Chinese Government needs to make fresh investment in addition to the 4-trillion yuan ($586 billion) economic stimulus plan to boost the slowing economy, a senior policy advisor said on Wednesday.

Zheng Xinli, vice-director of the Policy Research Office of the Central Committee of Communist Party of China, said the economic downturn is already bottoming out in China but it's still "necessary" for the government to increase the investment budget to boost the economy.

Policy advisor: 4-trillion-yuan stimulus is not enough

Boosting consumption now remains the top priority for the government, Zheng told reporters on the sidelines of the annual session of the Chinese People's Political Consultative Conference (CPPCC), which opened on Tuesday.

It's also necessary for the government to increase investment in affordable houses to boost the sagging property market, he added.

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Policy advisor: 4-trillion-yuan stimulus is not enough