China News Service:

At the Central Economic Work Conference, it was said that the country would prioritize the recovery and expansion of consumption. At present, domestic consumption is showing a steady recovery and good development momentum, but at the same time, it is also affected and restricted by factors such as citizens' consumption willingness and consumption environment. What measures will MOFCOM take to recover and expand consumption this year? Thank you.

Wang Wentao:

Let me take this question. Thank you for the question. Recently, the consumer market has been the focus of much attention. Since the beginning of this year, from New Year's Day to now, the entire consumer market has been gradually and steadily recovering with an obvious momentum. Monitoring by big data business platforms showed that during this year's Spring Festival holiday, the passenger flow in key business districts in 36 large and medium-sized cities across the country increased by 27.8% compared with the same period in the previous lunar year. Some business districts were filled with people. The sales of key retail and catering enterprises increased by 6.8% compared with the same period of the previous year. Some shopping malls, supermarkets, theaters and tourist attractions in various places were bustling. Lines could be seen outside many restaurants, and the table turnover rate was high in some restaurants enjoying popularity online. Bookings for hotels and flights began to heat up again, and culture, entertainment, sports and fitness consumption rapidly increased. It's fair to say that consumption got off to a good start at the beginning of this year, showing an obvious trend of recovery.

It was stated at the 20th CPC National Congress that we would work to expand domestic demand and better leverage the fundamental role of consumption in stimulating economic growth. The Central Economic Work Conference emphasized that priority should be given to restoring and expanding consumption. I think these statements attach importance to the function and status of consumption, respectively. "The fundamental role" focuses on the function of consumption, while "being given priority" puts an emphasis on the status of consumption. In your question, you mentioned two keywords: restoring and expanding, so I would like to answer your question and introduce our specific thought and measures through these two words. Restoring mainly refers to our present work. Part of consumption was affected by the COVID-19 pandemic, especially contact-based offline consumption. Therefore, our main task at present is to restore it, working to increase consumers' confidence and restore market vitality. Expanding refers to the future. On the basis of recovery, we will improve consumption conditions and innovate consumption scenarios, making efforts to promote consumption upgrading and the release of potentials. Based on stabilizing consumption in key areas and innovating and developing new-type consumption, we will focus on three aspects to restore and expand consumption.

First, we will carry out a series of "Year of Consumption Promotion" activities to boost consumers' confidence and consumption vitality. MOFCOM has designated 2023 as the "Year of Consumption Promotion" and will coordinate with relevant government departments and all localities, industries, associations, enterprises, and organizations to carry out a series of events to encourage purchases. We will create a strong consumption atmosphere with the theme of "Joys for All Year, Benefits for Everyone." Specifically, we have a plan of "6+12+52+N." "6" refers to six major themed activities. The months of January and February are the Spring Festival consumption season, and March is designated as the national consumption promotion month, for which we held a launch ceremony with the city of Beijing the evening before last. Following these events, we will also have consumption seasons focused on low-carbon, summer, autumn, and international exchanges, respectively, among others. "12" refers to 12 key expos, including the China International Import Expo (CIIE), which will help promote supply-demand matching and lead consumption trends. "52" indicates the 52 weeks in a year, during which various activities will be held regularly across the country, such as "A Happy Spring Festival with Ice and Snow, " "New Appliances, Green Lifestyle," and "Celebrating Asian Games, Enjoying Asian Specialties." "N" refers to supporting localities in holding distinctive consumption boost activities that align with their unique characteristics and consumption scenarios, such as the Beijing-Tianjin-Hebei Consumption Season, Shanghai 5·5 Shopping Festival, and Zhejiang's "Consumption in Zhejiang." With such activities being held one after another, we will ensure that there are constantly brilliant consumption promotion activities, achieving the goal of "holding activities of different themes for each quarter, new expos for each month, and new scenarios for each week." These activities are expected to bring about waves of consumption.

Second, we will stabilize and improve consumption in key areas, consolidating consumption fundamentals. Automobiles, home appliances, home furnishing, and catering are four major fields of consumption, contributing to one-fourth of the overall consumption. Therefore, they are key areas for restoring and expanding consumption. Last year, a series of policies were introduced to promote the sales of new energy vehicles and their positive impact was evident. The sales of new energy vehicles nearly doubled to exceed 6.8 million. The sales of new energy vehicles accounted for a bigger part of the sales of all types of automobiles. For every four cars sold, one is a new energy vehicle. This year, we will not only fully implement existing policies but also proactively introduce new policy measures. For instance, we will guide local departments to introduce new energy vehicles to rural areas, improve the operational charging environment and other services, and support purchases of new energy vehicles. Certainly, promoting new energy vehicles in rural areas presents more complicated issues than in cities, such as how to improve the supporting facilities including charging stations. We will coordinate with relevant departments to make proper plans and work harder to make steady progress. We will also expand the circulation of second-hand cars, promote purchases of green and smart home appliances in rural areas, and encourage the exchange of old appliances for new ones to stimulate household consumption of appliances and furnishings. Meanwhile, we will support the healthy development of new consumption forms and models to boost consumption vitality.

Third, we will advance the fostering and development of international consumption center cities, and innovate carrier scenarios. It is an important decision and arrangement made by the Party Central Committee to foster and develop international consumption center cities. In recent two years, we have collaborated with five cities, including Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing, to strengthen top-level design and overall planning. Backed by steady progress, we have achieved preliminary results. Shanghai has become a benchmark of the "first-store economy," Beijing has completed the upgrading and renovation of 22 traditional business districts, Tianjin's Golden Street and the Florentia Village outlet mall have been upgraded, Guangzhou has gathered new momentum through expos, and Chongqing has focused on cultivating the night economy and shaping the city brand of "sleepless Chongqing." Going forward, we will continue to focus on the three keywords: international, consumption, and center. We will strengthen the functional orientation and distinctive features of each city, and promote the implementation of plans for fostering and developing center cities through project-based management and checklists. We will also improve consumption carriers and the environment, navigate new consumption fashions and trends, and play a demonstrative and leading role in the expansion and restoration of consumption. Thank you.