China is to make boosting domestic demand a "long-term" strategy and take further measures to stimulate consumer spending, as the country seeks to lead its economy out of a slowdown.

In a speech by Premier Wen Jiabao in his Government work report at the opening of the second session of the 11th National People's Congress (NPC) last Thursday, he said China would "give a full play" to the "leading" role of domestic demand, particularly consumer demand, in driving economic growth.

He said this would be achieved by attempting to actively boost domestic demand by increasing people's income, encouraging auto consumption, tapping the rural market, stabilising the real estate market, offering proper housing for low-income families and accelerating the reconstruction of areas devastated in the May 12 earthquake last year.

The Government will also raise the proportion of the national income that goes to wages. Wen said that central government investment, planned at 908 billion yuan (US$132.7bn) this year, would mainly go to projects that could improve people's life, to create a more favorable environment encouraging people to spend. "We must channel government investment to areas where it best counteracts the effects of the global financial crisis and to weak areas in economic and social development," he said.

China announced a 4 trillion-yuan stimulus package last November aimed at boosting domestic demand, and a series of measures, including 40bn yuan in subsidy to farmers who buy home appliances, farming machines and motor vehicles.