Boosting Domestic Demand

The dual circulation development model has recently been given priority in China which is seeking to spur domestic demand and cater to export markets. Expanding domestic demand, supply-side reform and high-quality development are the main tasks for China's 14th Five-year Plan (2021-2015) after China recovered from the Covid-19 pandemic. During the two sessions in March, the State Council announced that China will expand domestic demand by fully tapping into the potential of the domestic market and better align consumption with investment. China is slated to boost major construction projects, better utilize investment projects within the central government's budget and promote special bonds issued by local governments. Experts believe that domestic demand is key to sustaining economic growth in China amid economic frictions and an export slump due to the pandemic.