China Decides to Alter Its Growth Model Next Year, Control Prices and to Grow Rapidly

At a meeting in Beijing to set economic policy guidelines, Chinese leaders decided to work on stabilizing prices and to speed up a change in China’s growth model next year.
President Hu Jintao and Premier Wen Jiabao attended the Central Economic Work Conference. The government reiterated its intention to keep the currency stable but did not stipulate any specific economic targets.
China is trying to increase private consumption and service industries, which will help the world economy. China is tightening monetary policy to slow down inflation from its current high of 5.1%
Lu Zhengwei, an economist with Industrial Bank Co in Shanghai, predicted that “The top concern for the government next year will be to contain inflation, stabilize growth and spur consumption,”
A stronger Chinese currency would lower global trade imbalances, boost private consumption and contain inflation, according to U.S. officials.