BEIJING: China will introduce new measures in boosting consumption in commodities and key sectors, and tapping rural consumption potential, according to the State Council, or the cabinet.
Greater support will be provided for the growth of Internet Plus Tourism, to better cater people’s demand in consumption upgrading, the State Council’s executive meeting chaired by Premier Li Keqiang decided on Wednesday. Figures from the Ministry of Commerce show that in 2019, retail sales in automobiles, home appliances, furniture, construction materials and catering sectors accounted for some 25 percent of the total retail sales in China, and retail sales in rural areas accounted for 14.7 percent of the total. In October, total retail sales saw a 4.3 percent year-on-year increase, registering positive growth for three consecutive months.
“At present, the prominent restraint on economic development lies in consumption as the main growth engine was seriously affected by COVID-19 earlier this year. It has been picking up in the past few months, yet notable difficulties remain in restoring normal growth. We need to explore new highlights in consumption to spur domestic demand,” Li said.
It was agreed at the Wednesday meeting that the strategy of bolstering domestic demands will be firmly implemented. Auto consumption will be stabilized and expanded. Local authorities are encouraged to finetune restrictive measures regarding car purchasing, and raise the ceiling of license plate quota.
Promotion campaigns will be carried out for vehicle purchasing in rural areas and trading in used cars for new ones. In rural areas where conditions permit, residents will be encouraged to buy trucks with capacity no bigger than 3.5 tonnes and passenger cars with engines no bigger than 1.6 liters. – PNP
