China will expand domestic demand by fully tapping the potential of the domestic market and promote better alignment between consumption and investment, Premier Li Keqiang said Friday while delivering the report on the government's work at the fourth session of the 13th National People's Congress.

The country will increase personal incomes and improve the flow of goods and services in urban and rural areas. It will encourage steady increases in spending on home appliances and automobiles, and promote consumption of services such as healthcare, culture, tourism and sports, Li said.

In order to expand effective investment, 3.65 trillion yuan ($560 billion) of local government special-purpose bonds will be issued with priority given to funding for key projects already under construction, and 610 billion yuan in its budget will be earmarked for investment as well, the report said.

(Cover: VCG)