While China’s domestic market maintains a stable expansion, the country still faces challenges in terms of lack of innovation and supply adequacy of commodities and services.
Consumption plays a vital role in China’s economy, contributing as much as 60% to the country’s GDP growth in the first half of the year. Retail sales of consumer goods increased 8.3 % year on year in the first seven months of the year after being down from an increase of 8.4 % registered in the January-June period.
The guideline aims to maximize China’s consumption potential and meet the market’s demand better
It would also commercially maximize struggling malls, stadiums and old factory zones to be made into commercial complexes, gym and entertainment centers. Efforts will also be made to support e-commerce in the country’s rural areas to help farmers to sell agricultural products to the cities.
Policies were also designed to help export-oriented firms to expand in the domestic market, while imports of high-quality foreign goods will be encouraged through channels such as cross-border e-commerce.
Incentives are thought to be introduced to support consumers to exchange old home appliances and electronics for more green and smart alternatives. Extend retail hours to promote “the night economy,” with convenience stores and restaurants open longer.
Other measures also include support for the “holiday economy,” as well as fiscal and financial policies to expand consumption.
China will additionally allow city-level governments to approve retail sales of refined oil products, it said, adding that it would also encourage credit support for purchases of new energy vehicles and smart home appliances.