China strives to bolster H2 consumption

Consumer expos, policy support to ensure faster growth: experts

China has been intensively holding consumption exhibitions and handing out vouchers to bolster consumer spending prior to the traditional peak season of September and October. Amid such efforts, experts said consumption will continue to rebound in the second half of the year, with growth of retail sales expected to exceed that seen in the first six months given effective control of the latest sporadic COVID-19 flare-ups.

Just as the second China International Consumer Products Expo concluded in South China’s Hainan Province recently, the sixth Global Cross-border Ecommerce Conference opened on Monday in Zhengzhou, Central China’s Henan.

During the three-day event, more than 200 domestic and foreign companies will exhibit and sell over 10,000 kinds of products, including specialties from Northwest China’s Xinjiang region and North China’s Inner Mongolia region, per government’s website.

Meanwhile, preparation for the 5th China International Import Expo is being carried out in an orderly manner, with more than 270 Fortune Global 500 companies and industry leaders having signed up for the event that will be held in November, Shanghai Mayor Gong Zheng said on Monday.

Supported by a variety of consumption exhibitions, the recovery in consumer spending is expected to accelerate in the second half, with the growth rate even exceeding that seen in the first six months, Pan Helin, an economics professor at Zhongnan University of Economics and Law, told the Global Times on Monday.

After epidemic was put under effective control in major cities, retail sales growth rate swiftly quickened to 3.1 percent year-on-year in June, reversing declines in April and May.

To stimulate spending, China has also rolled out a raft of policy incentives. Starting on Monday, the Beijing EconomicTechnological Development Area began to issue vouchers worth 100 million yuan ($14.79 million) in total, which can be used for buying cars, meals and movies, among others, per an official statement.

“As the Mid-Autumn Festival and the National Day holidays approach, tourism, physical retail and the catering sector will lead the recovery,” Pan said.

A top meeting of the Political Bureau of the Communist Party of China Central Committee held on July 28 urged efforts to consolidate the upward trend of economic recovery so as to keep the economy running within an appropriate range, and strive for the best possible outcome.

The authorities also focus on the need to stabilize the job market and increase consumers’ disposable income, especially for low-income families, to raise their spending power, Jennifer Ye, PwC Chinese mainland consumer markets leader, told the Global Times.