BEIJING: China will take policy steps to boost new types of consumption by supporting new business forms and models, with a view to promote economic recovery, according to a statement issued on September 9 after a State Council executive meeting, chaired by Premier Li Keqiang.
Consumption, as a key engine for growth, has been significantly affected by COVID-19 this year and become a drag on economic recovery. However, new forms and models of business based on the internet and digital technologies have generated rapid growth in new types of consumption despite the overall downward trend and demonstrated enormous potential.
“COVID-19 has made a big impact on consumption,” Li said. “For China to achieve positive growth this year, boosting consumption is vitally important. Efforts should be made in line with our own national conditions to expand channels of consumption and stimulate domestic demand.”
Those at the meeting agreed that it is important to remove consumption-related bottlenecks to economic growth and encourage market players to embrace innovation, so as to further unleash the potential of domestic demand and inject impetus into economic recovery.
“Consumption growth is mainly driven by the market. And for various reasons, a great deal of efforts is needed to give a real boost to consumption,” Li pointed out.
The meeting urged expanding and upgrading new types of consumption. Non-contact consumption will be promoted; online courses and remote diagnosis and treatment will be promoted; fitness and tourism sectors are encouraged to integrate their online and offline services; smart supermarkets powered by digital technologies will be developed; and supply chains that bring farm produce directly from fields to retailers will be improved.
Infrastructure supporting new types of consumption needs to be built at a faster pace. The coverage of 5G and Internet of Things networks will be prioritized in central business districts, industrial parks and transportation hubs. Rural commerce will go through digital upgrading.
In the meantime, the commercial use of consumer data will proceed in a secure and orderly manner.
– The Daily Mail-Beijing Review News exchange item
