Global Sustainable Prospect for China's Large Market Capacity and Potential

Since this year, China's economy has started smoothly under pressure and challenge. Residents' consumption has continued to flourish and investment growth has recovered steadily, highlighting the role and significance of the strong domestic market in economic operation. The accelerated release of China's large market potential will not only add to China's economic development, but also bring more dividends to the global economy in the process of further integration between China and the world. Consumption has become the main engine of China's economy. In the first quarter of this year, final consumption expenditure contributed 65.1% to economic growth, and consumer demand continued to be the dominant force driving economic growth.

In the first quarter of the year, the total retail sales of consumer goods nationwide reached 9779 billion yuan, an increase of 8.3% over the same period last year. James Lawrence, an economist and deputy dean of the Australia-China Relations Institute at the University of Science and Technology in Sydney, Australia, commented that China's retail industry was "thriving". Strong domestic demand has a positive spillover effect. David Goldman, an American economist, noted that almost all of China's Asian trading partners increased their exports to China at the beginning of this year. This momentum is continuing. In April, China's total import and export value of goods trade reached 2.51 trillion yuan, an increase of 6.5%, including import of 1.21 trillion yuan, an increase of 10.3%. In addition to commodity consumption, tourism, leisure, catering, culture, sports and other services are also highlighted. In the first quarter, service consumption accounted for 47.7% of the total residents'final consumption expenditure, which was 1.4 percentage points higher than the same period last year.

In the recent May Day holiday, the total number of domestic tourist receptions in China was 195 million, an increase of 13.7% according to comparable caliber. The film "Avenger Alliance 4: The End of the War" released by Manway Picture Company before May Day Holiday has been renovating its box office and becoming the most popular imported film in Mainland China.

"Chinese consumption ability has great influence, not only in China, but also in other countries all over the world. "Japan Economic News" website said. In the first quarter of this year, China's fixed assets investment grew by 6.3% year-on-year, increasing by 0.4 percentage points over the whole year of last year, and the effect of "stable investment" was further manifested.

In April, Gap Group, a multinational apparel company, added 11 stores in mainland China. "We are expected to open more than 40 new stores this year and possibly more stores next year." Mr. Yu Bingxiang, Executive Vice President and Chief Executive Officer of Greater China, said.

China has deepened the reform of "release control clothing", accelerated the building of a legal, international and convenient business environment, and promoted the promotion of the quality of attracting capital. In the first quarter, China's actual use of foreign capital increased by 6.5% year-on-year, with the actual use of foreign capital in high-tech industries increasing by 50.6% year-on-year.

Fuji Material Business News of Japan said that the investment in equipment of foreign-funded enterprises in China is becoming more and more active, and it is not difficult to see that they are actively preparing to seize the opportunities of domestic demand in China.

Under the circumstance of the sharp deceleration of global transnational capital flows, China has maintained steady growth in attracting foreign capital, which fully demonstrates the recognition of international capital to China's investment environment and its confidence in China's economic growth. Warren Buffett recently made it clear that China is a big market. "We like big markets" and that in the next 15 years, more large-scale investments may be made in the Chinese market. China has the largest and fastest growing middle-income group in the world, with huge market potential. As the website of American Consumer News and Business Channel says, China still has many untapped potentials in the Internet, health care, education and other fields. Through the structural reform of supply side, to create new market demand with high quality supply is the key to improve the quality and capacity of China's market.

As a large experimental site of technological innovation, China has attracted many enterprises to seek a layout in the fields of 5G, artificial intelligence, industrial Internet and so on. Huang Chen-hong, global executive vice president of Dell Technology Group and President of Greater China, told reporters that Dell has joined several well-known enterprises to set up local alliances for intelligent manufacturing in China to help Chinese enterprises establish advanced data centers and production systems.

To tap the market potential, we can not do without vigorous policy support. The implementation of the new tax law further lowers the VAT tax rate, lowers the social security premium rate, promulgates 24 "gift packages" to stabilize consumption and expand consumption policies, and comprehensively liberalizes the conditions for urban settlements. A series of policies will continue to enhance China's economic development momentum.

The economic potential that China's urbanization will stimulate is particularly concerned overseas. Xia Huasheng, an expert of the Vargas Foundation in Brazil, believes that China is in the process of synchronous development of new industrialization, informatization, urbanization and agricultural modernization, and its economy has been improving for a long time. By the end of 2018, the urbanization rate of the permanent population and the registered population in mainland China was 59.58% and 43.37%, respectively. If China's urbanization rate further rises to 70%, hundreds of millions of people will enter the city, which means that labor productivity will increase rapidly, the consumer market will expand rapidly, and the potential of economic growth will be released enormously.