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China continues to promote consumption

(chinadaily.com.cn)
Updated: 2010-03-15 16:15

China will take various measures to expand domestic demand and promote consumption, the Shanghai Securities News reported Monday, citing assistant Minister of Commerce, Fang Aiqing.

Expanding consumption in rural areas and spending in vehicle and household appliances, service, recycling and credit sectors fall into the main task of the ministry this year, Fang said.

The year 2010 will witness the implementation of household appliances and vehicles going to the countryside policy, incentives for replacing old vehicles and household appliances as well as preferential levy of 7.5 percent for purchasing small-displacement cars.

Some 100,000 stores and 1,500 to 2,000 delivery centers will be opened in the countryside to expand rural consumption.

The recycling system of renewable resources, regional terminal markets as well as flea markets will be bolstered to expand recycling consumption and develop low carbon economy.

In order to promote credit consumption, it will be a priority to improve the financing guarantee system and credit insurance mechanism.

A series of measures to promote consumption last year added momentum for China's economic recovery amid the international financial crisis. The year 2009 saw consumption contributed 52.5 percent to GDP, up 6.8 percentage points from 2008.