China will introduce new measures in boosting consumption in
commodities and key sectors, and tapping rural consumption potential,
according to the State Council, or the cabinet.
Greater support will be provided for the growth of Internet Plus
Tourism, to better cater people's demand in consumption upgrading, the
State Council's executive meeting chaired by Premier Li Keqiang decided
Figures from the Ministry of Commerce show that in 2019, retail sales
in automobiles, home appliances, furniture, construction materials and
catering sectors accounted for some 25 percent of the total retail sales
in China, and retail sales in rural areas accounted for 14.7 percent of
In October, total retail sales saw a 4.3 percent year-on-year
increase, registering positive growth for three consecutive months.
"At present, the prominent restraint on economic development lies in
consumption as the main growth engine was seriously affected by COVID-19
earlier this year. It has been picking up in the past few months, yet
notable difficulties remain in restoring normal growth. We need to
explore new highlights in consumption to spur domestic demand," Li said.
It was agreed at the Wednesday meeting that the strategy of
bolstering domestic demands will be firmly implemented. Auto consumption
will be stabilized and expanded. Local authorities are encouraged to
finetune restrictive measures regarding car purchasing, and raise the
ceiling of license plate quota.
Promotion campaigns will be carried out for vehicle purchasing in
rural areas and trading in used cars for new ones. In rural areas where
conditions permit, residents will be encouraged to buy trucks with
capacity no bigger than 3.5 tonnes and passenger cars with engines no
bigger than 1.6 liters.
Car buyers will be subsidized for phasing out the gasoline powered
vehicles of national emission standard III or below. The construction of
parking lots and charging piles will be stepped up.
Regions where conditions allow are encouraged to give out subsidies
for trading in old facilities and purchasing green smart home appliances
and environment-friendly furniture.
Catering service providers are encouraged to diversify and upgrade
their menus, innovate online and offline business models, and improve
service standards. Market-oriented promotion of high-quality specialty
diets will be supported.
Expanding county and township consumption shall serve as a fulcrum to
spur rural consumption. Construction of business and trade facilities
in counties and townships and logistics outlets in villages will be
Sub-national localities will be supported in building comprehensive
public service and consumer service centers that meet rural demands and
needs in farmers' daily lives.
Violations such as making and selling of fake or substandard goods
will be cracked down on pursuant to law to ensure that rural market will
be better regulated.
"Counties and townships shall also be included when boosting rural
consumption, as they boast enormous potential. High-end consumption in
big cities should not be our sole focus," Li said. "County consumption
capacity is modest, yet it will grow and upgrade. Efforts should be
taken to adapt to different consumer needs and improve people's lives."
Those at the meeting also agreed on a host of measures to support
Internet Plus Tourism. Development of smart facilities in tourist
attractions will be taken forward and services such as electronic maps
and audio guides will be promoted. Construction of digital exhibition
venues in major tourism sites will be encouraged.
Tourist sites will be encouraged to increase online marketing and
facilitate new business forms such as cloud tour. Regulatory measures
will be rolled out for Internet Plus Homestay. Traditional offline
services will remain in place for senior citizens and other special
Accommodating yet prudent regulatory approaches will be improved, and
tourism safety monitoring and online complaint handling will be scaled
"The model of Internet Plus Tourism will play a positive role in
catalyzing consumption. Practices proven effective shall be summarized
and promoted," Li said. "Accommodating yet prudent regulation needs to
be enhanced and cheating and swindling must be deterred." Enditem