Image Credit: Global Times
On Thursday, China’s National Development and Reform Commission (NDRC), the country’s leading economic planner, unveiled new strategies to invigorate domestic demand by boosting investment and consumption. This initiative comes as part of a broader effort to reinforce China’s economic stability and growth.
NDRC spokesperson Jin Xiandong announced during a press conference that the commission will increase support for government investments, aiming to channel and drive social investments effectively. The plan includes encouraging private sector involvement in key national projects. The NDRC intends to present high-quality projects to private investors and advance cooperation between government and private investments. Additionally, the issuance of real estate investment trusts will be accelerated to further stimulate private sector engagement.
Regarding consumption, the NDRC is set to implement an “employment-first” policy to explore various methods for enhancing income levels and, consequently, boosting consumer spending power. Jin highlighted that the NDRC will leverage ultra-long special treasury bonds to support trade-ins of consumer goods and will promote service consumption across multiple sectors including culture, tourism, education, healthcare, and childcare.
China’s consumer market has shown steady recovery this year. Retail sales of consumer goods increased by 2.1 percent year on year in August, according to data from the National Bureau of Statistics. The consumer price index, a key inflation indicator, rose by 0.6 percent year on year last month, a slight acceleration from the 0.5-percent increase recorded in July.
These measures reflect China’s commitment to strengthening its economic foundation through enhanced investment and consumption strategies, aiming to foster a more resilient and dynamic domestic market.