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    Home > Starting the Reform of Rural Market and Expanding Consumption

    Starting the Reform of Rural Market and Expanding Consumption

    Echemi 2019-08-13


    The Political Bureau of the Central Committee of the Communist Party of China recently held a meeting to analyze the current economic situation and deploy economic work in the second half of the year. The meeting proposed that we should tap the potential of domestic demand, expand and expand the final demand, effectively start the rural market, and use reform methods to expand consumption. As one of the "troikas" driving economic growth, consumption contributed 60.1% to economic growth in the first half of the year, and continued to be the first driving force for economic growth. Looking forward to the second half of the year, how to tap the potential and promote consumption through reform?

    Yang Dong is the head of the water purifier Department of a household appliances enterprise in Guangdong Province. He has been working in the water purifier industry for more than ten years. He said that in recent years, with the trend of consumption upgrading, their products have achieved rapid growth in the township market.

    Township market has witnessed rapid development of water purifiers in recent years, with a growth rate of more than 30%. Consumers in rural markets will be more receptive to these new products. In the first half of the year, the retail sales of rural consumer goods increased by 9.1% year on year, which was higher than the 8.3% increase of the retail sales of urban consumer goods in China. From the data point of view, rural consumer market performance is strong. According to Zhang Jianping, deputy director of Academic Committee of Academic Research Institute of Ministry of Commerce, the demand for durable consumer goods in rural areas is still in a period of rapid growth and has great potential for growth. The demand of rural residents has not yet been fully released, such as durable consumer goods, especially smartphones, furniture, small displacement cars and economic cars. This consumption potential is still very large. Although rural consumption has increased faster than urban consumption in recent years, rural consumption is also facing some development bottlenecks, such as insufficient development of the main body and relatively backward infrastructure. Zhao Ping, Director of International Trade Research Department of China Association for the Promotion of Trade, pointed out that in order to tap the potential of rural consumption, we must first solve these pain points. One is how to maintain and improve the steady and rapid growth of rural residents'income so as to narrow the income gap between urban and rural areas, which is an important prerequisite for starting rural consumption. The second is to continue to strengthen the construction of rural commercial logistics and information infrastructure, so as to effectively reduce the cost of agricultural products (5.400, 0.00, 0.00%) into cities and industrial products to the countryside, so as to make rural consumption more convenient. It is one of the policy ideas put forward by the meeting of the Political Bureau of the Central Committee to promote consumption in the second half of the year to coordinate urban and rural development and effectively start rural consumption. The second way of thinking is to deepen reform. Yang Chang, a senior economist at the China-Thailand Securities Research Institute, said that there are two meanings in "expanding consumption by means of reform". One is that we should not simply stimulate consumption; the other is that the reform efforts in education, health care and pension will be further strengthened, especially opening up to the outside world, which will help create new economic growth. Long point.

    Zhao Ping predicts that in the second half of the year, improving the consumption environment and increasing the consumption supply will become an important way to tap the potential of domestic consumption demand. For large-scale consumption such as automobiles and household appliances, it is more to promote the release of the internal growth power of consumption by building a more conducive environment of the system and mechanism of consumption growth; on the other hand, it will promote consumption growth through some specific subsidy policies, the scope will not be particularly large, there will be a target. For the new consumption areas in the future, I think that in the service consumption area, we may further expand market access, increase supply and other means to promote the shortcomings of consumption capacity in the service area. Ma Guangyuan said that new consumption would be a "new carriage". In the past, consumption was a short-term thing in many cases. After many policies had short-term effects, they were stimulated by new policies. And what does it mean to emphasize reform to expand consumption this time? Next, we will take consumption as a focal point and try to prevent the expansion of consumption from being institutionalized and unreasonable. I think this is a big bright spot. It can be said that new consumption is a "new carriage".

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