Turn the wheels of consumption to arrest economic downturn

China's total retail sales of consumer goods from January to April totaled 13.81 trillion yuan ($2.07 trillion), down 0.2 percent year-on-year, and the decline in April was 11.1 percent.

As the COVID-19 pandemic situation in Shanghai and Beijing improve, the consumer market's confidence will be restored, and disrupted logistics will be reversed. The upcoming Dragon Boat Festival holiday will also facilitate the orderly flow of people and boost consumption.

The government has introduced a series of policy measures to stabilize the economy. As long as there is smooth circulation in the market, market players are active, and market expectations and consumer confidence build up, both demand and supply sides will be invigorated, the economy's downward trend will be curbed, and the macro economy will be brought within a reasonable growth range.

Of the three drivers of economic growth, investment is effective, but overheated investment will produce side effects such as excess capacity, and exports are more subject to the external market, especially the global industry and supply chains.

Therefore, it is important for China to boost consumption. After all, final consumption expenditure contributed 69.4 percent to China's economic growth in the first quarter of this year.

While cutting taxes and fees for enterprises, the government should provide financing support to those enterprises that support the consumer market and solve the structural problems behind their financing. The survival and prosperity of a market of 1.4 billion people and industries related to the basic needs of people's livelihood are the key to maintaining the balance between supply and demand, ensuring employment and boosting consumption. The country should focus on the core industries and commodities that promote consumption and stimulate people's willingness to consume.

As one of the pillars of the national economy, China's traditional car market accounts for about 10 percent of the total social consumption and still has consumption potential. Its new energy vehicle market has a broader consumption space, while its rural passenger car market is yet to tap its huge potential. It is time to invigorate the passenger car market by lowering purchase taxes or adopting subsidies.