China.org.cn | May 21, 2020
Phoenix TV:
Mr. Zhong, as the consumer market is gradually picking up, what measures will the Ministry of Commerce take to boost consumption? Thank you.
Zhong Shan:
Thank you for your question. China is the second largest consumer market in the world. For six consecutive years, consumption has been the biggest driving force for economic growth. The CPC Central Committee has taken expansion of domestic demand as a major strategy. The Ministry of Commerce will work to further expand domestic demand and boost consumption in the following aspects:
First, we will work to establish the "15-minute convenient life circle". Although there are many convenience stores in China, the sector is not fully developed. The number of chain stores in China, for example, only reaches 130,000, and this is far from enough to meet people's everyday needs. Next, we will optimize the layout of convenience stores, promote the development of convenience store chains. This will also be applied to farmers markets, because their quality varies despite of their obvious size, and they remain under-developed. Next, we will work to promote the standardized renovation of farmers market, optimizing the environment, increasing the variety, and improving the quality.
Second, we will work to transform and upgrade pedestrian streets in cities because they have a huge impact on urban consumption and are of high demonstrative significance. The Ministry of Commerce launched 11 pilot projects at the end of 2018 concerning the transformation and upgrading of pedestrian streets, and achieved excellent results. The total pedestrian flow of these 11 streets exceeded 900 million last year, increasing by 22.6% from 2018. Total income reached 125 billion yuan, up 17%. Next, the Ministry of Commerce will launch a second batch of pilot pedestrian streets, and work to turn them into a platform of consumption upgrading, a carrier of high-quality development, and a window for opening-up.
Third, we will work to develop the life service industry. This sector has seen rapid growth in recent years. However, the COVID-19 has had huge impact on catering and housekeeping services. The income of the catering sector in the first four months of this year fell 41%, whilst that of the housekeeping services also decreased drastically. We need to help related enterprises to develop in this difficult time. The catering industry is both a traditional and a "sunrise" industry. As the saying goes, "Food matters." The catering industry in China still has huge potential of development. It accounts for 11% of total retail sales of consumer goods, creating 21 million jobs. We need to support its development across China, and make it greener, healthier and safer. Another point is the development of housekeeping services. This is an industry with the countryside and cities at each end. China has abundant resources in this regard. There is much spare labor in the countryside and also huge demand in the city. Last year, the income of China's housekeeping services exceeded 690 billion yuan. We need to continue work in this field. The Ministry of Commerce has established a credit platform of housekeeping services. The move aims to regulate the operation of housekeeping companies, better protect the rights and interests of labor in this sector, and provide better services to urban families. Thank you.