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ag视讯直播厅:China moves to unleash market demand for stronger growth against external uncertainties

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ag视讯直播厅:China is maneuvering its policy toolkit to bolster the demand of its super-large domestic market to perk up the economy for stronger growth.

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XinhuaUpdated:  August 5, 2022
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Against the backdrop of the COVID-19 pandemic and external complexities and uncertainties, China is maneuvering its policy toolkit to bolster the demand of its super-large domestic market to perk up the economy for stronger growth.

At a high-profile meeting last week, Chinese leadership analyzed the current economic situation, stressing that macro policies should play a proactive role in boosting demand. Fiscal and monetary policies should be able to effectively offset deficiency in social demand.

"Taking both immediate and long-term benefits into consideration, the policies emphasized efforts to expand domestic demand further, spur the vitality of market entities, and foster new growth drivers," said Wang Yiming, deputy head of the China Center for International Economic Exchanges.

People visit the Kunming Dounan Flower Market in Kunming, southwest China's Yunnan Province, July 12, 2022. (Xinhua/Chen Xinbo)

PUSHING UP DEMAND

Since March, COVID-19 flare-ups hit consumption hard and caused a decline. However, the country's retail sales of consumer goods regained vitality and reversed the declining trend to climb 3.1 percent year on year in June, thanks to effective epidemic prevention and control measures and the adoption of a raft of policies to spur consumer spending.

Restaurant owners, retailers, and other businesses susceptible to COVID-19 have been offered lower rents and platform commissions, as well as stronger financing support. Local governments are handing out billions of yuan in vouchers and subsidies to shore up local spending.

Purchases of big-ticket items such as automobiles are also warming up as policymakers flesh out details for a stimulus package, including slashing the car purchase tax to help the industry that plays a critical role in boosting demand.

Auto sales in the country expanded 23.8 percent year on year in June, rebounding from a three-month declining streak, official data showed.

In addition to consumption, the government has also strengthened measures to further ensure the smooth flow of logistics and circulation of freight transportation to stabilize the industrial and supply chains.

By 2035, the country aims to basically build a modern national road network that is extensive, fully functional, efficient, green, intelligent, and safe, according to a plan unveiled by the NDRC in July.

"The construction of national roads will continue to play a key role in stimulating effective investment and stabilizing the broader economy," said NDRC spokesperson Meng Wei.

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