BEIJING, Nov 9: China unveiled a multi-trillion yuan economic stimulus plan on Sunday aimed at boosting domestic consumer demand in the face of flagging exports, as foreign markets contract in the global financial crisis.

The measures were approved at a cabinet meeting chaired by Prime Minister Wen Jiabao the other day, state media said, and would increase spending on infrastructure and a range of other sectors amid slowing domestic growth.

“China has decided to adopt an active fiscal policy and moderately easy monetary policies to foster fast but steady economic growth by expanding domestic demand,” said a statement posted on the cabinet’s website.

The spending package would total four trillion yuan ($586 billion) by the end of 2010, including monies already earmarked this year, it said.

The measures come amid slackening overseas demand for China’s manufactured goods, the mainstay of the Chinese economy, and the statement said they were aimed at spurring domestic consumption to take up that slack.“Although we face many difficulties, domestic spending power remains strong,” the statement said.

The move is the latest in a series of recent steps by China to counter the global financial crisis.

Economic growth in China eased to nine per cent in the third quarter of this year, the lowest in around five years, partly due to slowing exports.

The central bank has already cut interest rates three times since September and taken other steps to loosen monetary policy.

Those measures marked an about-face from a policy of steadily raising interest rates to cool the economy amid growing inflation and fears of overheating.

The cabinet, or state council, also recently approved a plan to spend two trillion yuan on construction of new railways from now until 2020.—AFP