Platform economy needs push to give consumption a boost

The Government Work Report says that China will promote sustained recovery of consumption, increase household income through multiple channels and improve the income distribution system.

Statistics show that China's final consumption expenditure contributed 5.3 percentage points to GDP growth and 65.4 percent to economic growth last year, making consumption the leading driver of economic growth.

However, the pandemic continues to obstruct the revival of consumption by hindering the flow of people and logistics. The disrupted industrial and supply chains are also barriers. All these will put pressure on both the macro economy and people's livelihoods.

To stabilize the economy and increase demand, China needs to keep expectations stable and remove the pandemic's negative influence. China has a great deal of experience in epidemic prevention and control, but more targeted and accurate measures still need to be introduced to release the suppressed consumption vitality.

For example, the epidemic has severely hit the catering and tourism sectors. Online ordering can supplement catering, but it is unlikely to motivate consumers. Only by integrating online and offline consumption can we truly boost the driving force of consumption and invigorate the consumer market.
The country has introduced a number of measures to boost consumption. In February, multiple government departments jointly issued a notice, rolling out strong and targeted assistance policies for catering, accommodation and other industries, especially micro, small and medium-sized enterprises.

In March, the Ministry of Commerce organized the 2022 National Consumption Promotion Month, during which various activities were carried out to stabilize the consumption of key commodities. With the rising enthusiasm for "snow and ice" sports brought by the Beijing Winter Olympics, various forms of snow- and ice-themed consumption promotion activities have been organized.

In order to tap new consumption points, it is necessary to provide corresponding policy support, such as the application of new technologies to improve the capacity and efficiency of the platform economy and make logistics distribution channels more smooth.

The country should inject new vitality into the platform economy through the empowerment of artificial intelligence. In addition, the concept of "metaverse" can be introduced to enhance consumption experience through "virtual reality", to cultivate the new concept of consumption and enhance the new connotation of consumption.

- BEIJING YOUTH DAILY