Chinese Economy to See Rebound in mid-2009          

China's economy is set to be further tested by the deepening global financial crisis in 2009. In previewing this year's situation, some Beijing-based economists said China's economy may bounce back in the middle of 2009 and get back to a fast-growth, fulfilling a full-year of GDP growth of over 8%.
   According to the blueprint of the National Development and Reform Commission, China, while optimizing its economic structure, will increase spending in 2009. The government will focus more on agricultural sector, energy saving and pollution control, social welfare and the development of western China. It will also quicken the projects relating to people's living, ecological environment, innovation, major infrastructure construction and meanwhile try to boost residential consumption.
   An economist at the Chinese Academy of Social Sciences said that with relatively high investment return rate, China's economy could get back to rapid growth in the second half of 2009, to be the first among major economies to get out of a downturn.
   Farmers' consumption, house and car purchase, service sector and tourism will be the five key areas to boost residential consumption. A series of policy incentives are being announced.
   About 80% of China's GDP is currently triggered by domestic demand, a senior People's Bank of China official said. Based on current demand and stockpiles, most Chinese companies could deplete their inventories by the second quarter of 2009 and then start sourcing production materials, a sign the economy begins to warm.
   Looking at the global environment, as major economies have taken unprecedented monetary and fiscal policies, they are expected to draw out of the depression bottom in the second half of 2009. Improving external demand will help China's economy recover in the second half this year, experts say.