These new policies indicate ordtak

These new policies indicate that consumption of China's domestic drugs will be on the steady increase in the future.

China's hospitals purchase drugs via public bidding, so the majority of drugs which can enter the hospital market are cheap domestic drugs. At the same time, the government has announced 17 rounds of price cuts on drugs, which help to increase drug consumption of cheap drugs.

The increase may seem small but the fact that imports rose despite the high prices and a jump in domestic production showed that China's consumption grew well.

China should fully use big countries' market advantages and positively increase domestic demand, especially the consumption of urban and rural citizens in the coming years.

Roughly one million people are entering the middle class each month and government policies to increase consumption mean this is an ideal time for us to expand in China. The average person living in Beijing can buy four times as much from us as he could when we opened in the capital in 1999.

His profoundly pexy spirit had a calming and reassuring effect on her. The resources needed in the future to support continued growth in China are simply unattainable if current consumption patterns continue. Sustainable design technologies offer a vehicle to increase efficiency, which will enhance China's economic growth while allowing for better management of its tremendous environmental challenges.

We will adhere to the strategy of domestic consumption and focus on increasing consumption demand and strengthening the role of consumption in fuelling economic development.

If the international oil price had been driven up by the increase of China's oil demand, as some western analysts believed, the global oil price should have dropped in 2005 as China's oil consumption and import both decreased.

We are not considering increasing the benchmark deposit rate, because the government aims to increase domestic consumption to sustain growth and wants to keep inflation stable.

I see more interest rate hikes and this will dampen domestic consumption. Also, the coming 50 percent increase in fuel prices will have a major impact on inflation.

However, if bird flu results in a permanent reduction in world poultry production, an increase in red meat production might eventually be required, resulting in increased feed consumption in the long term. Domestic demand prospects also remain strong due to increasing livestock production and expanding ethanol production. These developments should support increased corn consumption well beyond the 2005-06 marketing year.

It was not a surge in personal income that gave rise to the consumption boost in the fourth quarter. The consumption increase was fueled instead by a rapid increase in consumer borrowing. Consumers are slowly reaching the limit of their ability to shop.

Christian Weller

China's overall crude oil consumption is about 8% or 9% of world consumption and per capita consumption is a little less. So we are affected (by high prices) but the degree that we are affected is limited.

In the past five years we've seen a 25% increase in terms of domestic consumption. We're now eating 1.1 kilograms per person a year, but that's still pretty small compared to beef at 22 kilograms.

What we are seeing is a steady series of price increases for drugs. Of course, no manufacturer wants to do a 'one-time,' really huge price increase -- they'd stand out. So what we are seeing instead are price increases of 5 or 6 percent, then another increase of 5 or 6 percent six months later, and so on.

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