Peo­ple need qual­ity growth

China Daily (Hong Kong) - - COMMENT - -- PEO­PLE’S DAILY

Pres­i­dent Xi Jin­ping re­cently em­pha­sized that the fun­da­men­tal pur­pose of boost­ing eco­nomic growth is to ease peo­ple’s con­cerns. The lead­er­ship has al­ways fol­lowed the peo­ple-first prin­ci­ple. China has solved many knotty prob­lems in the course of its re­form. Yet in most cases, the mount­ing pres­sure cre­ated by the prob­lems ne­ces­si­tated the re­forms.

China’s rise is based on solving prob­lems one af­ter an­other to bring tan­gi­ble ben­e­fits to the peo­ple. But solving the ex­is­tent prob­lems does not mean new ones will not arise.

The small de­mand for con­sumer goods dur­ing the planned econ­omy pe­riod gave way to ever-rising de­mands af­ter re­form and open­ing-up were launched, which played a key role in China’s high-speed growth for more than 30 years. But the fast-paced growth has led to struc­tural over­ca­pac­ity.

In the new nor­mal, the Chi­nese econ­omy has seen pro­found changes in con­sumers’ de­mand; the de­mand for more per­son­al­ized prod­ucts and higher-qual­ity ser­vices is rising. A prod­uct’s qual­ity and brand mat­ters more to some con­sumers than its price. In fact, last year Chi­nese peo­ple spent 1.2 tril­lion yuan ($180 bil­lion) over­seas on lux­ury goods.

This is where sup­ply-side struc­tural re­form comes in. The author­i­ties launched it to bet­ter meet con­sumers’ de­mand. So com­pa­nies should re­al­ize that if they ad­just their prod­ucts to the mar­ket’s needs, they can avoid over­ca­pac­ity.

Among peo­ple’s con­cerns to­day are en­vi­ron­men­tally friendly heat­ing, garbage clas­si­fi­ca­tion, air and wa­ter pol­lu­tion, proper waste dis­posal, nurs­ing homes for the aged, hous­ing prob­lems and food safety. Th­ese con­cerns can be met by chang­ing the en­ergy gen­er­a­tion and con­sump­tion pat­tern, pro­tect­ing the en­vi­ron­ment, dis­pos­ing of waste sci­en­tif­i­cally, im­prov­ing the so­cial wel­fare sys­tem, reg­u­lat­ing the hous­ing mar­ket and strictly su­per­vis­ing food safety. All th­ese sec­tors not only of­fer great op­por­tu­ni­ties, they can also be new growth points.

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