Hong Kong Bauhinia Magazine:

Following the rise of the ice and snow economy, China saw a tourism boom during the Qingming Festival holiday. What's your take on the trend of the consumer market? And what are the NDRC's considerations in actively fostering new growth drivers of consumption? Thank you. 

Jin Xiandong:

Thank you for your questions. China's consumer market has been recovering since the beginning of this year. As you mentioned, from the ice and snow economy earlier this year to the consumption boom during the Spring Festival holiday, and now to the "holiday economy," we have seen the emergence of diversified consumption hotspots and trends, which has driven a steady growth in consumer spending. In terms of spending on consumer goods, sales revenues of the market continue to recover. In the first quarter, the retail sales of consumer goods surpassed 12 trillion yuan, up 4.7% year on year. With the ongoing consumption upgrade, retail sales of sports and entertainment products and communication equipment grew by 14.2% and 13.2%, respectively. Bulk consumption has maintained steady growth, and green consumption has become a new trend. Data from the China Association of Automobile Manufacturers shows that automobile sales in the first quarter increased by 4.6% year on year. Sales of new energy vehicles rose by 31.8%, increasing their market share to 31.1%. Service consumption has grown rapidly. The retail sales of services in the first quarter grew by 10% year on year, 6 percentage points higher than that of goods. Demand for cultural and tourism consumption is booming. The box office during the Qingming Festival holiday hit a new historical record. Domestic trips made during the holiday increased by 11.3% compared to the same period in 2019, and tourists' spending increased by 12.7%. The enthusiasm for travel during the upcoming May Day holiday is also rising. These not only reflect people's expectations for a better life, but also demonstrate the momentum and vitality of the country's economic recovery.

Looking forward to the year ahead, driven by policies aimed at bolstering domestic demand and fostering consumption, regions and sectors across the country are continuously innovating consumption scenarios and enhancing the consumption environment. With an increasing number of favorable factors supporting consumption growth, there is optimism that consumption will maintain a stable trajectory of improving and upgrading. The NDRC will further leverage the role of the Inter-Ministerial Joint Conference on improving consumption systems and mechanisms, ensuring coordinated efforts across departments and regions to implement and refine policies and measures aimed at promoting consumption. This will facilitate a transition from post-pandemic recovery to sustained expansion in consumption. The work will be focused on the following three key areas:

First, our efforts will concentrate on ensuring stable employment and boosting income to effectively enhance residents' consumption. We will further implement the employment priority policy, organize and carry out a three-year action plan to promote youth employment, strengthen support for entrepreneurship in rural areas and utilize every possible means to stabilize and promote employment. Simultaneously, we will enhance the mechanism for adjusting minimum wage standards, facilitating a reasonable and steady growth in residents' incomes while also diversifying channels to increase property income for both urban and rural residents.

Second, our focus will be on expanding demand and ensuring high-quality supplies, continually fostering new drivers for consumption growth. We will encourage initiatives oriented toward market and consumer demand, nurturing multiple innovative consumption scenarios and formats. This includes supporting the advancement of new technologies such as artificial intelligence and the Internet of Things, actively promoting trends in smart homes, entertainment, tourism, sports events and domestic brands. Additionally, we will collaborate with relevant departments to effectively implement programs such as trade-in schemes for consumer goods.

Third, we will prioritize protecting consumer rights and cultivating a sound consumption environment. This entails working closely with relevant departments to enhance mechanisms for consumer complaints and protection of rights, expediting the establishment of a robust system for safe consumption, strengthening supervision and law enforcement in consumer affairs, regulating online transactions and effectively safeguarding the legitimate rights and interests of consumers. Thank you.