CCTV:

During the historic transformation from secure access to food and clothing to a decent life, and finally, to moderate prosperity, China's consumption structure has shifted focus from consumption for survival and a decent life to consumption for an affluent life and enjoyment. What measures have been taken by the MOFCOM to upgrade consumption, and what measures will be adopted in the future? Thank you.

Wang Wentao:

I will answer your questions. Consumption is an important engine driving growth and reflects people's need for a better life. Since the 18th CPC National Congress, the MOFCOM has resolutely implemented the strategy of expanding domestic demand. Here I will present you some data. In terms of scale, China's total retail sales of consumer goods grew from 20.6 trillion yuan in 2012 to 39.2 trillion yuan in 2020, up by 8.4% per annum on average. China has become the world's second-largest consumer market, second only to the United States. In terms of structure, people's level of consumption and quality of life have been greatly improved, which I think has been witnessed by everyone here. Here are some figures. Every 100 households have 121 color TV sets, 102 refrigerators, and 254 mobile phones. Our service consumption has grown rapidly. Though hit hard by the epidemic, it still accounted for 50.1% of total consumption spending last year. Along with the improvements in the quality of life, consumption upgrading has been continuously accelerated. We have seen that new areas of consumer spending continue to emerge in service consumption and new consumption patterns, such as digital consumption, cultural consumption, tourism consumption, and health consumption. Nowadays, some new business formats and models are often referred to as consumption scenarios. Different consumption scenarios keep evolving and innovating. Next, the MOFCOM will adapt to consumption trends and make efforts in the following aspects:

First, we will upgrade traditional consumption, which has a huge potential. Home appliances, furniture, automobiles, and catering are the top four popular consumption products, accounting for about 25% of the total retail sales of consumer goods. Take automobile consumption for example, we will promote the shift from purchase management to usage management for automobiles, especially expanding the distribution of second-hand cars. These days I have paid special attention to second-hand cars. One of the rules of international automobile consumption is that when vehicle holding reaches a certain number, the market of second-hand automobiles will see a significant rise in trade volume. Therefore, the second-hand market will grow bigger in the future, promoting both sequential consumption and circular consumption. We encourage the recycle of home appliances and furniture in the regions with suitable conditions, as well as exchanging old for new. We also support innovation of the catering industry's operational model and improvement in service quality to further expand catering consumption. More attention should also be paid to the preservation and innovation of time-honored brands, brand consumption, and especially new business formats and models, including the "China-Chic" economy, which has attracted many young people.

Second, we will accelerate the fostering of new consumption patterns. The pandemic has buoyed some new consumption patterns dominated by online consumption, with many innovative changes. So, we must accelerate the fostering of new consumption patterns, including smart shops, contactless delivery, house call services, and other new business formats and models. Meanwhile, we encourage traditional circulation enterprises to create new consumption scenarios which are immersive, experiential, and interactive. When going shopping in Beijing, I often find some new, exciting, and refreshing consumption patterns. There are many creative internet-famous sites in districts with distinctive features. All these are new and dynamic growth areas.

Third, we will upgrade consumption platforms. Through the innovation and development of consumption platforms, we will connect points, lines, and planes and finally combine the expansion of consumption with the improvement in people's living standards. I just said that we are fostering five international consumption centers, namely Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing. Meanwhile, we will promote high-quality upgrading of pedestrian streets and develop business districts and districts with distinctive features. This May, we worked with relevant departments to launch a nationwide campaign of Consumption Promotion Month, which was a great success. Next, while making an all-out effort to contain the epidemic, we will launch more campaigns and adopt a series of policies and measures to further boost consumption based on its characteristics. We will also promote shopping festivals to attract consumers and boost the market and the business, meet diversified demand at various levels, and adapt to the trends to promote the upgrading of both consumption structure and capacity. Thank you.