Li Yang, director of the Institute of Finance at the Chinese Academy of Social Sciences, said yesterday that increased investment is needed to contain the economic downturn.

China's economy began to slow down in the second half of 2008. Rising prices have been brought under control and the emphasis of policy has shifted from fighting inflation to stemming the downturn.

Economic statistics from 1980 to 2007 demonstrate that overseas demand and domestic consumption cannot sufficiently stimulate China's economy at present, and that investment is the best way of boosting growth, said Li.

He added that fiscal and monetary policy support is need for investment programs. Decision makers should also consider relaxing approval criteria, but investment programs must be commercially sustainable, he said.

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(China.org.cn by Fan Junmei, November 26, 2008)