China's economy, traditionally driven by export and fixed-asset investments, is navigating a slowdown as its growth model reaches its maturation phase.
Recognizing the need for change, the Chinese mainland is shifting focus towards high-quality development and enhancing domestic consumption, with consumer confidence at the forefront.
Following a frank assessment during a July Politburo meeting highlighting challenges like insufficient domestic demand, the State Council swiftly unveiled 20 targeted initiatives to stimulate consumption.
These measures include easing car purchase restrictions, supporting first-time home buyers and upgraded housing, and promoting cultural tourism. Additionally, efforts to boost home decoration and electronic product consumption leverage smart technologies and green initiatives.
Amid these strategies, a Politburo meeting readout in July bluntly assessed that the economy is facing new difficulties, mainly insufficient domestic demand, but expressed optimism that \"the economy has tremendous resilience and potential for development, and its long-term sound fundamentals remain unchanged.\"
China emphasizes digital and green consumption, aspiring to elevate household consumption from 38% of GDP towards the global average of 60%, aligning with its long-term vision extending to 2035. This includes enhancing food and clothing quality, travel, residential services, and the sharing economy, ensuring sustainable and resilient economic growth.
Reference(s):
cgtn.com
