Xi Jinping: Domestic Consumption to be “the alpha and omega of future economic development”
Tashkent, Uzbekistan (UzDaily.com) -- Amid unfavorable economic and geopolitical factors (decline in global trade and investment, turbulence in the global financial market, de-globalization trends, growing protectionism, deterioration of relations with the United States), China has high hopes for domestic consumption to maintain stable growth national economy. Chinese President Xi Jinping said that domestic consumption will become "the alpha and omega of economic development in the future."
According to observers, China in the past decade has sought to make the economy less dependent on exports and reorient it towards domestic demand and consumption, and has achieved good results. In the period 2009-2019, domestic consumption increased from US$2.6 trillion to US$8 trillion. It is expected that in 2030 this figure will reach US$17 trillion.
The main part of the Plan of Social and Economic Development of the PRC for 2020 is devoted to the development of domestic consumption.
The document sets the task of promoting the recovery of consumption after the COVID-19 pandemic in every possible way in both traditional markets and online platforms, and integrating various consumption platforms. China intends to turn individual cities into international consumption centers and actively develop a cluster of night consumption.
According to experts, the growth of domestic consumption in the PRC has something to provide both on the demand side and on the supply side:
1) China has more than 100 million market entities and more than 170 million highly qualified professionals in all industries;
2) there is a strong middle class of over 400 million people, which forms a powerful domestic market. The growth of domestic consumption will also be facilitated by the elimination of poverty (US$21 billion allocated for this project in 2020), the widespread involvement of migrant workers (290 million people) from villages in the economic activities of cities, as well as an effective social security system. This will increase consumer and investment activity of the population.
In general, according to experts, unfavorable external factors that have a negative impact on the rate of development of the PRC economy in the near future can be offset by the development and expansion of domestic markets, which will become the main factor of economic growth.