BEIJING, Nov. 27 (Xinhua) -- China has unveiled a comprehensive plan to improve the alignment of the supply and demand of consumer goods, in its latest move to tap the potential of its super-large market and provide sustained momentum for the world's second-largest economy.
The plan, which was unveiled by the Ministry of Industry and Information Technology (MIIT) and five other government departments, outlines measures that include those to foster new consumption sectors such as smart homes and green construction materials, promote upgrades of consumer goods in rural areas, and increase the supply of specific goods ranging from winter sports gear and popular toys to products for infants and the elderly.
The country will "coordinate the expansion of domestic demand and the deepening of supply-side structural reform," according to the plan, noting that consumption's rate of contribution to economic growth will increase steadily by 2030.
At a Thursday news briefing concerning the plan, MIIT deputy head Xie Yuansheng noted that China's consumer goods sector has entered a new development phase in which good quality commands good prices, and that the improved matching of supply and demand will be the optimal way to unleash the country's consumption potential.
Under the plan, three trillion-yuan (about 141.24 billion U.S. dollars) consumption sectors -- elderly care products, intelligent connected vehicles and consumer electronics -- will be formed by 2027, Xie said. Additionally, ten 100-billion-yuan consumption hotspots will be fostered, including goods for children and infants, smart wearables, cosmetics, fitness equipment, and pet food and products.
Improving supply-demand alignment will also drive industrial upgrading, create a virtuous cycle where new demand generates new supply, and ensure positive interactions between consumption and investment, as well as between supply and demand, said Liu Xiangdong, a researcher at the China Center for International Economic Exchanges.
The move comes as China includes boosting consumption as a top priority on its policy agenda for 2025, and it signals continued focus on supporting consumption over the next five years, as noted in a recommendations document for the formulation of the 15th Five-Year Plan (2026-2030).
The country aims to "achieve a notable increase in household consumption as a share of GDP," and to increase the role of domestic demand as the principal engine of economic growth over the next five years, according to the document.
Consumption remains a robust driver of the Chinese economy. In the first three quarters of this year, final consumption expenditure contributed 53.5 percent to China's economic growth, compared to 44.5 percent for the entirety of 2024, according to the National Bureau of Statistics.
To boost consumption, the Chinese government has unveiled a raft of measures, including an expanded consumer goods trade-in program, increased consumer finance offerings, and strengthened employment support.
These efforts are yielding results. The consumer goods trade-in program has spurred sales of a wide range of products, including home appliances, e-bikes and new energy passenger cars, with sales of such products cumulatively topping 2.4 trillion yuan during the first 10 months of this year.
Supported by the program, retail sales -- a major indicator of the country's consumption strength -- maintained a stable rise, increasing 4.3 percent year on year during the January-October period. Enditem
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