China's government should continue efforts to expand domestic consumption amid the global economic uncertainty, said Liu Tienan, Vice Minister of the National Development and Reform Commission, in remarks published on Monday.

The fundamentals of China's economy were sound, but the country also faced challenges, Liu said during an industry meeting in Beijing at the weekend, according to Monday's China Securities Journal.

China should step up efforts in industrial restructuring, innovation and changing its development mode.

He called for more support for farmers and more public resources allocated to improve social welfare.

Su Ning, deputy governor of the People's Bank of China, the central bank, said at the meeting that there was "still room to tap more domestic consumption" and the central bank would adopt a flexible and prudent monetary policy.

Some experts present at the meeting held stable economic development depended on a proactive fiscal policy and a more relaxed monetary policy to prevent economic decline.

China's economy grew at 9 percent in the third quarter over the same period last year, the slowest rate in five years, as the global financial crisis sapped demand for Chinese goods, and domestic industrial production waned in response to weak demand and rising raw material costs.

Fu Ziying, Vice Minister of Commerce, said it would be more difficult to maintain stable export growth next year because of the global financial turmoil.

Fu said the government should give more support to help export-oriented enterprises to tide them over difficulties.

(Xinhua News Agency November 3, 2008)