Regulatory obstacles may hinder China’s consumer-led growth
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.