China should alleviate the shortage of basic public services to unleash potential demand, particularly equalising services for nearly 300 million migrant workers, Liu Shijin, a member of monetary policy committee of People’s Bank of China, told MNI on the sidelines of the China Development Forum 2023 on Saturday.

The key to expanding domestic demand is to meet consumption demand in sectors including health care, education, and social security, he said. Raising total factor productivity was crucial to China’s economic recovery, he said.

Liu told the forum that China is pursuing lower carbon emissions while achieving economic growth, arguing innovation is a priority. Markets that benefit green innovation and the transition towards green products is necessary, while tax reductions targeting new energy sector should also be implemented, he suggested.