Reg­u­la­tory ob­sta­cles may hin­der China’s con­sumer-led growth

China Daily (Canada) - - VIEW -

Do­mes­tic consumers have ex­plic­itly demon­strated their ris­ing power as a key driv­ing force be­hind the Chi­nese econ­omy by trav­el­ling and spend­ing madly across the coun­try dur­ing the week­long Na­tional Day hol­i­day that be­gan on Oct 1.

But some re­cent con­fus­ing reg­u­la­tory at­tempts by lo­cal gov­ern­ments on is­sues closely re­lated to con­sumer en­thu­si­asm in­di­cate that pol­i­cy­mak­ers have yet to fully rec­og­nize the ne­ces­sity of re­leas­ing the tremen­dous po­ten­tial of Chi­nese consumers.

Ac­cord­ing to the China Na­tional Tourism Ad­min­is­tra­tion, nearly 600 mil­lion peo­ple vis­ited tourist at­trac­tions around the coun­try and spent about 500 billion yuan ($74.97 billion) dur­ing the hol­i­day, up 12.8 per­cent and 14.4 per­cent re­spec­tively year-on-year.

Dou­ble-digit con­sump­tion growth is noth­ing un­usual in this coun­try, but it is re­mark­able when the world’s sec­ond largest econ­omy’s growth has slowed, to 6.7 per­cent in the first half of this year, amid huge un­cer­tain­ties at home and abroad. Be­cause of such strong con­sump­tion growth mo­men­tum and po­ten­tial, it is no sur­prise that some peo­ple have even called for the gov­ern­ment to in­tro­duce more such week­long hol­i­days.

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