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A staff member introduced consumers to a trade-in program for smart home appliances at a home appliance store located in Chongqing's Shapingba district on July 11, 2024. Photo: VCG

 
China will focus on boosting consumption in areas such as vehicles and home appliances, a senior Chinese official said on Thursday, while noting that the economy faces both increasing risks and challenges as well as opportunities.

In light of persistent downward pressure on the world's second-largest economy, more policy measures are expected to be rolled out in the second half of the year to support the economic recovery, as recent top meetings have stressed the need to stabilize the economy, experts said. 

During a press conference on Thursday, Yuan Da, a deputy secretary general of the National Development and Reform Commission (NDRC), said that the country will proactively expand consumption going forward. 

"We will put consumption promotion in a more prominent position," Yuan said, noting that efforts will be made to boost consumption of big-ticket items such as automobiles and home appliances, improve and expand consumption of services such as education, eldercare, childcare and housekeeping, as well as support the high-quality development of culture, sports and tourism. 

"All of these areas are critical for boosting consumption," Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Thursday, noting that policy measures will help smoothen consumption channels and boost the public's enthusiasm for consumption. 

Stimulating consumption has become a top priority in China's efforts to further boost the economic recovery, as consumption has become the biggest growth driver. A meeting of the Political Bureau of the Communist Party of China Central Committee on Tuesday noted that the emphasis should be placed on boosting consumption to expand domestic demand, and the focus of economic policies should shift toward bringing real benefits to the people and promoting consumption.

Given the emphasis on consumption, more policy measures are expected in the second half of the year to boost consumption and support the ongoing economic recovery, experts said. 

"The contribution of consumption to economic growth now greatly exceeds that of investment. Continued stimulus measures in this regard may further enhance the driving role of consumption in the economy," Zhao Xijun, co-president of the China Capital Market Research Institute at the Renmin University of China, told the Global Times on Thursday, noting that more measures are needed to bolster consumer's spending power.

The Political Bureau meeting also noted that it is necessary to increase personal incomes through multiple channels, enhance the capability and willingness of low- and middle-income groups for consumption, make services consumption a major driver in the expansion and upgrading of consumption, and support consumption in cultural tourism, eldercare, childcare, domestic services and other areas.


In addition to efforts to boost consumption, more policy measures are expected in the second half of the year to stabilize overall economic growth, as the economy is facing growing risks from the external environment as well as domestic challenges from the ongoing economic transition, experts noted. 

"This year's main consideration is to stabilize economic growth and consolidate the economic recovery. Therefore, in terms of policy support, including fiscal, tax and monetary policies, the intensity will need to further increase," Zhao said.

The Political Bureau meeting on Tuesday also pointed out the unfavorable conditions brought about by changes in the external environment have increased, and it called for determined efforts to accomplish the economic and social development targets for the year. 

At the press conference on Thursday, Zhao Chenxin, a vice chairman of the NDRC, said that while the Chinese economy faces more risks and challenges, there are also plenty of positive factors and opportunities, including an improvement in international trade. Zhao pointed to policy measures, including the issuance of ultra-long special treasury bonds, to support the economy. 

"We have the conditions, ability and confidence to overcome the problems in development and the challenges in transformation, and complete the annual goals and tasks with high quality," Zhao said.