MK sports 2022. The complex, also the world's largest stand-alone duty-free shop with a total building area of 280,000 square meters, opens the same day. The complex features more than 800 brands. Photo: cnsphoto" src="https://www.globaltimes.cn/Portals/0/attachment/2022/2022-10-28/5879d003-6209-4a19-b9ba-8db66b082233.jpeg" />

A view of the Haikou duty-free shopping complex in South China's Hainan Province on October 28, 2022. The complex, also the world's largest stand-alone duty-free shop with a total building area of 280,000 square meters, opens the same day. The complex features more than 800 brands. Photo: cnsphoto

There are currently some pessimistic and skeptical views surrounding China's consumption, suggesting that general consumers have concerns about their spending, and efforts to boost domestic demand may not have the desired effect. However, these claims are not accurate.

The current insufficient domestic demand is only a temporary challenge that can be overcome. As China continues its economic transformation, the focus on expanding domestic demand and promoting consumption is expected to propel the country's economy forward. China is also likely to lead the global consumer market in five years.

First, with its massive size and high level of consumption, the Chinese market is expected to significantly impact the economic structure and industrial development of the global economy.

China has the world's largest middle-income group and the second-largest consumer market, according to a Xinhua report in March. China's middle class has surpassed 400 million and is steadily expanding, showcasing significant purchasing power potential. For instance, PwC forecast that China's luxury goods market will reach $148 billion by 2030, surpassing that of the US. China is expected to become the world's top buyer by 2025 - surpassing both the US and Europe, according to PwC.

The potential of China's consumer market should not be underestimated. Given the huge market size of China, even a slight change in it can have a significant impact on the global economy. For example, in the field of medicine, with further opening and facilitation of investment, China will have great potential for development of innovative drugs. Moreover, with a number of new areas and future industries emerging, the Chinese market is expected to create even greater opportunities for companies from other countries.

Second, the rapid advancement of China's modernization will help China to create the best business environment and the most advanced market system in the world.

The high-quality development of China's modernization requires it to implement a higher quality and higher level of opening-up. History has shown that talent is attracted to technology, technology is driven by capital, and capital is influenced by the market. A favorable market environment is crucial above all else.

China needs to embrace a higher level of openness that aligns with the current trend of economic globalization.

Through institutional innovation, China is expected to promote the emergence of new models and new industries. It is expected that an increasing number of multinational companies will be attracted to the Chinese market.

Third, the development of the digital economy will accelerate the transfer and establishment of new types of consumption globally, with China leading the way in this transformation.

New consumption is not just a change in consumption patterns, but also an important sign of a new stage of high-quality economic development. Compared to traditional consumption, new consumption is characterized by new formats and models such as online shopping, mobile payment, and the integration of online and offline channels.

China's digital economy is at the forefront globally, with the promotion of consumption becoming more intelligent and convenient through modern information technologies such as big data, artificial intelligence, and the Internet of Things, leading an unprecedented revolution in consumption history.

To consolidate its leading role, China needs to create conditions to leverage the digital economy to accelerate the transformation and innovation of global new consumption. China should continue to act on the principle of seeking progress while maintaining stability and establishing the new before abolishing the old. In doing so, China is poised to become a key player amid global transformation of consumption.

The author is a former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges. [email protected]