Opinion | China's multiple measures to boost consumption will promote market vitality continues to surge
Recently, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued a special plan to boost consumption. Against the backdrop of the current domestic and international economic situation, the contribution of consumption to economic growth has become increasingly important. Researcher Yi Shaohua, Director of the Market Circulation and Consumption Research Division at the National Academy of Economic Strategy, Chinese Academy of Social Sciences, stated that consumption has played a significant role in driving economic growth over the past few years. In 2024, the contribution rate of consumption to economic growth reached 44.5%, further highlighting its role as the primary engine of economic development.
Yi emphasized that the key to boosting consumption is to improve both residents' ability and willingness to consume. The main task of the plan is to increase the incomes of urban and rural residents, including raising wages and property income, with a special focus on increasing farmers' incomes. Rising incomes directly strengthen residents' purchasing power and provide a solid foundation for the market.
China's government work report this year emphasizes the need to vigorously promote consumption and improve the quality of consumption. To achieve this, efforts must be focused on key areas such as employment, income growth and social security. Yi stressed that strengthening social security is equally important. Improving medical care, education, elderly care and child-rearing support can significantly ease people's worries, boost consumer confidence and boost economic momentum.
"The successful implementation of these policies requires the active participation of market players. While government policies provide guidance and regulation, their ultimate effectiveness depends on businesses and market forces working together to achieve tangible results." Yi said.
According to Yi, China's consumer market has shifted from a focus on goods consumption to a stage where goods and services consumption are equally important. In terms of goods consumption, improving product quality is essential to enhance the overall quality of consumption and meet consumers' evolving demands.
In recent years, the optimization of the visa-free policy has boosted the growth of inbound tourism. Yi believes that further improving the consumer experience for international tourists requires a multi-pronged approach. It is important to improve foreign language service systems at tourist attractions, such as improving foreign language maps, providing electronic audio guides, and staffing certain scenic spots with multilingual service personnel or volunteers. Many small and medium-sized restaurants can introduce multilingual menus, provide detailed descriptions of dishes, and encourage businesses to use translation software to better communicate with foreign visitors. In addition, using artificial intelligence to provide electronic translation devices is another viable option, Yi said.
Yi believed that optimizing the payment environment is also crucial to improving the inbound tourism experience. Measures such as increasing foreign currency exchange points and enhancing cash payment convenience will be key. Yi suggested setting up clear signage for foreign exchange services in major tourist areas and business districts, or encouraging convenience store chains to offer currency exchange services, so that international visitors can easily convert their money into Chinese yuan. (By Zhao Anqi/China Youth Daily)
