RIYADH: China is formulating plans to boost the recovery and expansion of consumption, the state planner’s spokesperson Meng Wei said on Wednesday, according to Reuters.
The move signals officials’ concerns about weak demand despite a sharp rebound in retail sales.
China’s economy grew faster in the first quarter as businesses and consumers emerged from crippling pandemic disruptions, although headwinds from a global slowdown point to a bumpy ride ahead.
The National Development and Reform Commission pledged to promote a sustained recovery in consumption.
"Currently, we are working on drafting documents on the recovery and expansion of consumption, mainly focusing on key areas such as stabilizing big-ticket consumption, enhancing service consumption and expanding rural consumption," said Meng.
Meng, at a news conference, also mentioned stabilizing automobile consumption, which was a "big part" of supporting consumption, by promoting new energy vehicles to rural areas.
Although official data showed retail sales rose faster in March than the previous month, policymakers remain concerned that the lack of demand is adding uncertainty to the economic growth.
"The international environment is still complex and ever-changing, constraints from insufficient domestic demand are obvious, and the foundation for economic recovery is not solid," said statistics bureau spokesperson Fu Linghui on Tuesday.
Meanwhile, China’s retail sales of consumer goods went up 5.8 percent year on year in the first quarter of this year, the National Bureau of Statistics said Tuesday, reported the Xinhua News Agency.
In March alone, retail sales jumped 10.6 percent year on year, data from the NBS showed.
Retail sales in urban areas reached nearly 3.29 trillion yuan (about $478 billion) last month, up 10.7 percent year on year, while those in rural areas increased 10 percent year on year.
In March, retail sales of goods rose 9.1 percent from a year ago to about 3.41 trillion yuan, while catering revenue hit 370.7 billion yuan, surging 26.3 percent year on year.
The country’s retail sales of consumer goods totaled around 11.49 trillion yuan in the first quarter, the NBS said.
Online consumption remained a bright spot, with online retail sales rising 8.6 percent year on year to reach about 3.29 trillion yuan in the first three months of this year.
(With input from Reuters and Saudi Press Agency)
