Measures set to accelerate consumption

China on Friday unveiled a raft of measures to spur auto and electronics consumption, part of wider efforts to promote a sustained recovery in consumption and consolidate the recovery trend.

Officials and experts said the latest push would further unleash consumer demand, boost domestic demand and inject strong impetus into the world's second-largest economy.

Meanwhile, they warned that the recovery of consumption is not yet solid and demand is still rather weak, and called for steps to further boost consumer confidence and promote the growth of key fields such as consumption of services and big-ticket items, as well as new types of consumption.

The National Development and Reform Commission and several other central departments released two documents on Friday.

The documents detail a total of 22 measures, including easing restrictions on car purchases, reducing costs on the purchase and use of new energy vehicles and promoting the consumption of home appliances in rural areas, seeking to create a better environment for the consumption of automobiles and electronic products.

Shares of companies in the retail sector jumped notably on Friday, with Nanjing Central Emporium (Group) Stocks Co Ltd and Renrenle Commercial Group Co Ltd both surging by the 10 percent daily trading limit, according to Shanghai-based information provider Wind Info.

Chang Tiewei, deputy director of the NDRC's Department of Employment, Income Distribution and Consumption, said at a news conference on Friday in Beijing that the two newly announced plans are part of a package of policy measures to spur consumption, and the country will soon issue a comprehensive document to "restore and expand consumption".

Data from the National Bureau of Statistics show that the country's final consumption expenditure contributed to 77.2 percent of its GDP growth in the first half of the year, serving as the main economic driver during the period.

President Xi Jinping has emphasized the importance of expanding the country's consumption demand.

In an article in April in Qiushi Journal, the flagship magazine of the Communist Party of China Central Committee, Xi, who is also general secretary of the CPC Central Committee, called on policymakers to form a complete domestic demand system as soon as possible, and establish and improve a long-term mechanism for expanding household consumption.

Citing the tone-setting Central Economic Work Conference held late last year, Chang said restoring and expanding consumption will be key priorities for China in 2023.

Looking ahead, the NDRC will increase spending and support for the construction of new infrastructure, such as fiber optic networks, 5G and artificial intelligence. In addition, more efforts will be made to continuously improve the construction level of digital, intelligent and network infrastructure, particularly by encouraging more investment in new infrastructure projects in central and western regions.

Huo Fupeng, deputy director of the NDRC's Department of Industry, said the commission, together with the relevant departments, will closely monitor the operation of the NEV industry, further expand the consumption of NEVs and promote the high-quality development of China's automotive industry.

China's retail sales, a key gauge of consumer spending, grew 3.1 percent year-on-year in June, down from the 12.7 percent in May, NBS said.

Citing a recent survey of consumers, Wang Yun, deputy director of the Institute for International Eco-nomic Research of the Chinese Academy of Macroeconomic Research, said that although concerns were voiced due to the lingering impact of the COVID-19 pandemic, they expressed strong confidence in prospects for increased incomes and consumption in the medium-to-long-term.

Looking ahead, Wang said she believes recovery in consumption will help the nation achieve its full-year growth target of around 5 percent this year, and called for more efforts to promote growth in key fields such as the consumption of services and big-ticket items as well as green and smart household products.

Wang Yiming, vice-chairman of the China Center for International Economic Exchanges, said it is advisable for the government to boost services consumption in fields such as tourism, catering, accommodation and entertainment, further stabilize the property market to boost household consumption and spur new types of consumption.