China says consumption growth will remain fast in 2016

[BEIJING] Consumption in China will continue to grow at a quick pace in 2016, Minister of Commerce Gao Hucheng told a news conference on Tuesday.

China's economic slowdown has caused jitters in global financial markets as it seeks to rebalance its economy towards consumption-led growth from a traditional reliance on exports and investment.

Consumption accounted for 66.4 per cent of China's GDP growth in 2015, the statistics bureau said in January. Business surveys have shown resilient growth in the services sector even as activty in "old economy" sectors such as heavy industry contracts.

Recent yuan fluctuations will not impact trade performance, Mr Gao also said, adding that neither depreciation or appreciation of the yuan would benefit China's trade.

The yuan has fallen a further 3 per cent against the dollar after China devalued its currency by nearly 2 per cent on Aug 11 last year.

Mr Gao also said Beijing does not think the US-led Trans-Pacific Partnership (TPP) targets China.

China is not among the 12 Pacific-Rim countries which agreed to the trade pact, the most ambitious in a generation, in October last year. The accord includes Australia and Japan among economies worth a combined US$28 trillion.

He added the TPP and the Chinese-led Regional Comprehensive Economic Partnership (RCEP) are moving in the same direction.

REUTERS