SCIO briefing about policies and measures on stabilizing employment, ensuring stable growth and promoting high-quality development

CCTV:

The current international environment is complex and severe. The high tariffs imposed by the U.S. have inevitably put pressure on China's economy, further highlighting the role of consumption in driving economic growth. May I ask what work and achievements the Ministry of Commerce has made in boosting consumption? What practical measures will be taken next to further unleash consumption potential and boost economic growth? Thank you.

Sheng Qiuping:

Thank you for your attention to our efforts to expand consumption. In the current complex and challenging international environment, vigorously boosting consumption and comprehensively expanding domestic demand is of special importance.

Since the beginning of this year, the Ministry of Commerce has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, vigorously carrying out special actions to boost consumption. We have intensified efforts to expand the scope of the trade-in program for consumer goods, promoted quality improvements and upgrading of commodity consumption, and promoted the high-quality development of service consumption. We have also organized various consumption promotion activities, such as national premium launch seasons, and successfully held the fifth China International Consumer Products Expo (CICPE), promoting the continuous expansion of consumption. In the first quarter, total retail sales of consumer goods grew 4.6% year on year, with the growth rate 1.1 percentage points higher than that of the previous year. In particular, growth in March was 5.9%, the fastest monthly rate since last year. The contribution rate of consumption reached 51.7%, an increase of 7.2 percentage points compared with last year.

Looking ahead, we will resolutely implement the deployments of the meeting the Political Bureau of the CPC Central Committee held on April 25. We will focus firmly on managing our own affairs well, introduce detailed measures aligned with policies aimed at stabilizing employment and the economy, and further enhance the role of consumption in driving economic growth. We will better cope with external risks and challenges through a strong domestic market. I would like to highlight the following four measures for you.

First, we will expand and improve the implementation of the trade-in program for consumer goods. Last year, the trade-in program for consumer goods achieved positive results. This year, we are building on that momentum and expanding the scope, with support funds doubling to 300 billion yuan. The number of supported categories for home appliances has expanded from eight to 12, and subsidies for purchasing new digital products such as mobile phones have been introduced. We are guiding local governments to promptly introduce and implement measures, ensuring that these policies are implemented quickly and that the public benefits as soon as possible. As of midnight on April 27, the nationwide program resulted in 2.814 million vehicle trade-ins, 49.416 million old home appliance trade-ins across 12 categories, 37.855 million purchases of new digital products such as mobile phones, 40.906 million kitchen and bathroom product upgrades, and over 4.2 million old electric bicycles trade-ins. The program drove total sales of over 720 billion yuan. Since the policy's implementation, many foreign trade and foreign-funded enterprises have received policy support. Numerous new consumer products that are intelligent, green, healthy, and fashionable have entered thousands of households. More than 120 million people have benefited from substantial subsidies and discounts. Moving forward, we will continue to enhance the effectiveness of the consumer goods trade-in program, allowing consumers to enjoy the policy benefits more quickly and effectively.

Second, we will push forward reforms in the automobile circulation and consumption sector. Building on efforts to promote trade-ins and meet consumer demand for new vehicle purchases, one of our key tasks this year is to organize pilot reforms in automobile circulation and consumption, supporting qualified areas to innovate and take the lead in various aspects such as new cars, used cars, scrapped vehicles and the automotive aftermarket. We have encouraged relevant regions to optimize car purchase and traffic restriction policies to better meet residents' car-buying needs. We have focused on efficiently completing tasks, built a national information platform for the entire automobile life cycle, broken down data silos, and facilitated used car transactions. Furthermore, we have supported the local development of automotive aftermarket sectors including vehicle modification, RV camping and classic cars, promoted automobile sports and culture, extended the automobile consumption chain and worked to cultivate new growth areas in vehicle consumption.

Third, we will implement initiatives to improve service consumption quality and benefit consumers. Recently, we have worked with relevant departments to introduce the 2025 work plan for improving service consumption quality and benefiting the public, the action plan for increasing the number of "silver-haired" tourism trains, the special action plan to promote health consumption, and several measures to expand and upgrade home services consumption. In the first quarter, 187 tourist trains were operated, up 30% year on year, with elderly tourists accounting for nearly 80%. We implemented initiatives to expand and upgrade the "15-minute convenient living circle" pilot, with priority on filling service gaps for older adults and children to create a "circle of happiness" for residents. Looking ahead, we will actively respond to public expectations, address shortcomings and weaknesses in service consumption, and work with relevant departments to formulate comprehensive policy measures to support service consumption. We will carry out activities to expand consumption, such as the service consumption season, to create service consumption hotspots. Adhering to the principle of "opening up externally and relaxing restrictions internally," we will enhance policy support and continuously expand the supply of diversified services such as health, elderly care, child care and home services to better meet people's growing needs for a better life.

Fourth, we will hold a series of activities for the "Shopping in China" campaign. On April 13, at the fifth CICPE, we jointly launched the "Shopping in China" campaign with relevant departments. We directed local governments to focus on the first-launch economy and hold first-launch, first-show and first-exhibition events, as well as a variety of colorful and diverse special activities in four major areas: boutique shopping, gourmet cuisine, exciting tourism and exquisite performances. "Shopping in China" caters not only to Chinese consumers but also to people worldwide. Yesterday afternoon, we held a press conference announcing policies to further optimize departure tax refunds and boost inbound consumption. For example, enterprises with a tax credit rating of M or above can apply to become tax refund stores. The minimum purchase threshold for refunds has been lowered from 500 yuan to 200 yuan, and the cash refund limit has been raised from 10,000 yuan to 20,000 yuan, making it more convenient for foreign tourists to obtain tax refunds. I sincerely welcome friends from abroad to visit China to shop for quality products, enjoy our delicious food, and experience our beautiful scenery.

I believe that with the continued implementation of consumption-boosting policies, consumption will continue to show a stable development trend, and the vitality and potential of China's supersized market will be further unleashed. Thank you.