Chinese Premier Wen Jiabao urged the nation to properly handle the relationship between domestic and overseas demand in social and economic development in the next five years.

"We must base ourselves upon expanding domestic demand, a long-term strategic policy that we must stick to," Wen said in an explanation about the Proposal on the Eleventh Five-year Program at the Fifth Session of the 16th CPC (Communist Party of China) Central Committee a week ago.

He said that China should further expand not only investment demand but also consumption demand to boost the country's economic growth.

Meanwhile, he said China also needs to further open up the international market and expand overseas demand.

The premier also emphasized four other major relationships that need to be handled with great attention in social and economic development in the coming five years, including relationship between market mechanism and macro regulation, between central government and localities, between social development and economic development, and between reform, development and stability.

Wen said that China must act in line with rules of a market economy, but at the same time, macro regulation must be strengthened and improved to ensure a stable and healthy economic development.

For the relationships between the central government and localities, Wen said the central government must take into consideration the differences and interests of different regions when stipulating a policy. Meanwhile, localities must obey the central leadership and take the interests of the whole country into account.

On social development and economic development, Wen said China must unswervingly take economic construction as the core task while social development is a necessity and important guarantee for economic development.

Source: Xinhua