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Nation to spur consumption rebound and trade

By LIU ZHIHUA | China Daily | Updated: 2021-12-29 09:20
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Export-bound cars awaiting shipment at Yantai Port, Shandong province. [Photo by Tang Ke/For China Daily]

China will strive to better facilitate consumption rebound, foreign trade and investment growth, to advance high-quality economic development in 2022, the country's Ministry of Commerce said.

Commerce Minister Wang Wentao told Xinhua News Agency that the business sentiment is likely to feel obvious pressure from shrinking demand, supply shocks and weakening expectations next year, despite its upbeat high-quality development this year.

To tame the risks, the country will ensure consistency in policies while unleashing new policy measures combining cross-cyclical and countercyclical adjustments.

It will also take measures to stabilize market entities, especially small, medium-sized and micro enterprises, while securing the domestic market and supply chain, Wang said.

He also said China will make more efforts to shore up high-quality development. Such efforts include accelerating consumption upgrades to unleash potentials, promoting innovative development in foreign trade to improve competitiveness, and expanding two-way investment cooperation in sectors like science and technology, green development and digital economy.

Even as COVID-19 continues to curtail economic activities at the international level, the annual Central Economic Work Conference earlier this month mapped out key risks and counter measures for the Chinese economy to achieve stable growth next year.

Analysts said China will likely adopt more efficient measures to better stabilize expectations, boost development and expand high-level opening-up.

"We will firmly implement domestic market expansion strategy to strengthen internal development momentum, while opening-up at a higher level to deepen reforms and push for high-quality development," Wang said.

Kang Yong, chief economist at KPMG China, said, "The Chinese economy will see a shift of balance in the rebound momentum from external to domestic demand next year, as the nation's macroeconomic policy will become more flexible and precise with the COVID-19 gradually coming under rein."

Consumption in China remains resilient, and the improved job market has laid a solid foundation for consumption recovery, Kang said, adding that progress in urbanization, promotion of common prosperity, and improved social welfare will strongly support mid to long-term domestic consumption growth.

The rise of domestic brands also will spur the growth in consumption, he said.

According to Wang, China must innovate to bolster confidence and stimulate vitality in consumption, while taking concrete measures to achieve common prosperity.

Such measures include strengthening distribution and logistics in urban and rural areas, cultivating new consumption models and formats, and promoting consumption upgrades, he said.

The government will also roll out targeted measures at the local level to facilitate foreign trade enterprises, and encourage innovations for new advantages in global trade, he said.

Such innovations will include new scientific and technological applications, new foreign trade models and formats, and regulatory adjustments. Securing healthy operation of industrial and supply chains and helping enterprises to increase presence in overseas markets will also become key tasks for the commerce authorities next year, he said.

According to Huo Jianguo, vice-chairman of the Beijing-based China Society for World Trade Organization Studies, the Chinese government will likely take more measures to stimulate investment by private enterprises to expand exports.

The country also aims to make better use of foreign investment by expanding opening-up and improving business environment, Huo said.

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