China will follow the strategy of expanding domestic demand while focusing on improving demand structure to drive economic growth, said Chinese Premier Wen Jiabao Wednesday.

Wen made the remarks in a keynote speech at the opening of the World Economic Forum's annual meeting of "New Champions 2011" in the city of Dalian in northeast China's Liaoning province, reported Xinhua.

Wen said domestic demand is a crucial and necessary choice for a big country to achieve sustainable economic growth. He said enormous domestic demand will be generated by upgrading consumption and raising the life quality of urban and rural population and strengthening weak links in economic and social development.

He said China will endeavour to create a favorable environment for consumption, improve consumer expectation, boost spending power and upgrade consumption structure.

He said the country will also advance urbanisation, protect and improve people's well-being and speed up the development of services industries during the course of consumption.

As of the end of 2010, the nation's tertiary industry accounted for 43 percent of the GDP, up from 40.5 percent in 2005. Urbanization rate stood at 47.5 percent in 2010.