China targets domestic demand boost for economic growth
China will increase production of high-quality consumer goods and promote new growth points in service consumption as part of efforts to increase domestic demand aimed at supporting economic growth this year.
National People’s Congress (NPC) spokesman Lou Qinjian told reporters on Wednesday that consumption is the main driver of the country’s economy, contributing 52 percent to the country’s economic growth last year.
Total retail sales of consumer goods exceeded 50 trillion yuan ($10.3 trillion) for the first time last year, he said.
China will also promote high-quality employment and try to increase the incomes of urban and rural people to increase their consumption capacity, Lou said.
Chinese policymakers are struggling to reverse persistent weakness in domestic demand. The supply and demand imbalance in the economy also maintains long-standing deflationary pressures on ex-factory prices.
Lou said the NPC Standing Committee will oversee the formation of a unified internal market and revitalize rural areas.
Efforts this year will include investing more resources in people’s livelihood, as well as formulating laws and plans for social and medical security, including child care.
“So that people can consume, dare to consume, and are willing to consume,” Lou said.
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