Consumption 'making up 60pc of China's growth'
Commerce Minister Wang Wentao says retail sales of consumer goods grew 5.5 percent on average annually over the past four years and are expected to top 50 trillion yuan in 2025. Photo: AFP
Consumption has contributed around 60 percent on average annually to China's economic growth over the past four years and its role as the economy's main engine has continued to strengthen, Minister of Commerce Wang Wentao said on Friday.
Retail sales of consumer goods grew 5.5 percent on average annually over the past four years, with sales expected to top 50 trillion yuan in 2025, he said.
China, Wang added, has imported consumer goods worth 7.4 trillion yuan between 2021 and 2024, the first four years of the 14th Five-Year Plan period (2021-2025).
Furthermore, sales revenue under trade-in programs in China has surpassed 2.9 trillion yuan as of the end of June, boosting consumption.
Foreign direct investment into the mainland, in actual use, has exceeded the target of US$700 billion since the start of the 14th Five-Year Plan period while China's outbound investment maintained an average annual growth rate of over 5 percent during the past four years, making it among the world's top three investors, Wang said.
China's economy, he added, is still facing a "very severe and complex situation", suggesting the government would take action to counter challenges ahead.
Growth came in at 5.2 percent in the second quarter, official data showed on Tuesday, but analysts have warned that more work was needed to avoid a slump in the second half of the year.
"We are still facing a very severe and complex situation. Global changes are unstable and uncertain. Some of our policies will provide some new responses according to the times and circumstances," Wang said.
"Our toolbox is plentiful, and we will be fully prepared."
Asked specifically about China's reliance on exports, Wang suggested the government was preparing policies to "further stimulate the momentum of our consumption development".
"China's economy is improving, and the long-term fundamentals have not changed, the consumption market's characteristics of great potential, strong resilience and vitality have not changed," he said.
"We are also promoting new forms of consumption... for example Pop Mart, these kinds of new trends, new fashions and styles... the Labubu phenomenon has swept the world."
Beijing-based toymaker Pop Mart's Labubu monster dolls have become a must-have item internationally, adorning the handbags of celebrities such as Rihanna and Cher. (Xinhua/AFP)
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