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Targets set to increase consumption


A customer drives a shared electric shopping cart at a supermarket in Xi’an, northwest China’s Shaanxi Province, Oct. 24, 2022. [Photo/VCG]

Policy paper charts course to foster stronger domestic demand and promote stability

China has drawn up a plan to boost domestic consumption and foster a stronger domestic market, with a view to promoting the country’s high-quality development and lasting stability.

The document, which was jointly issued by the Communist Party of China Central Committee and the State Council and made public on Wednesday, outlines long-term goals for implementing the domestic demand enhancement strategy. from 2022 to 2035.

Released amid multiple pressures from COVID-19 outbreaks and a darker and more complicated international environment, the plan will help increase effective investment, boost consumption and foster the new development paradigm, officials said. experts.

“There is an urgent need for China to increase domestic demand, as external demand may deteriorate next year due to a slowdown in the global economy,” said Liu Chunsheng, associate professor at Central University of Finance. and economy. “Boosting domestic demand is therefore not only essential for long-term economic restructuring, but also for ensuring stable short-term economic growth.”

The resolute implementation of the domestic demand expansion strategy and the promotion of a holistic domestic demand system are key to accelerating the construction of a new development paradigm, in which the domestic market is the mainstay and domestic and international markets are mutually reinforcing. They also represent strategic decision-making to promote the country’s long-term development and lasting stability, according to the plan.

The plan states that by 2035, the country’s consumption and investment size will be elevated to a new stage, a holistic domestic demand system will be formed and in full swing, the new type of industrialization, applications information technology, urbanization and agricultural modernization. will be essentially achieved and the construction of a stronger internal market will have made great progress.

He said that by 2035, core technologies in key areas will make significant breakthroughs, and domestic circulation driven by innovation and driven by domestic demand will be more efficient.

The plan also states that by 2035, people’s incomes will increase significantly, the gap between urban and rural development will have narrowed significantly, the middle-income group will be expanded, and the common prosperity of all will see progress. substantial.

He pointed to the greater role of reform in promoting domestic demand growth, saying that by 2035, the high-level market system will be fully improved and the modern circulation system will be established. China will become much stronger in its participation in global economic cooperation and competition, and the global influence of China’s domestic market will be greatly enhanced, he added.

The document clearly states that the country will implement the strategy of expanding domestic demand while deepening supply-side structural reform and boosting the dynamism and reliability of the national economy while committing to a higher level in the global economy, experts said.

Luo Zhiheng, chief economist at Yuekai Securities’ research institute, said boosting domestic demand will serve as a key driver to foster China’s high-quality growth in the coming years. This will help to fully release consumption potential, expand effective investment, build a strong domestic market and promote industrial upgrading, Luo added.

The outline also defined the short-term objectives for the implementation of the strategy for expanding domestic demand up to 2025, including how to promote consumption and investment, unlock the potential of domestic demand, improve the market system and facilitate the dynamism of the economy.




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