China to take multiple measures to expand consumption in 2018

China will take multiple measures to expand consumption in 2018, with information technology-related products and services being the major area, said Chinese newspaper Economic Information Daily on Jan. 18.

The information consumption of China is expected to reach 6 trillion RMB ($933 billion) in 2020, with an average annual growth of over 11%. The sector will also be responsible for an output of 15 trillion RMB of related industries.

“Information products are not only a major growth point of general consumption, but will also drive the development of the digital economy,” said Gao Hongbing, president of Ali Research, an institute under Alibaba Group. It will be a major driving force of China’s future economy, he added.

With the expansion of this sector, more tax sources and jobs will be created, Gao told Economic Information Daily.

According to national departments, including the Ministry of Industry and Information Technology (MIIT), practical policies will be rolled out this year to further spur consumption on information products and services.

For instance, the government will encourage the promotion of digital home appliances such as smart TV, smart speakers, and smart security systems, accelerating the establishment of universal specifications.

In addition, the country will accelerate the digitalization and utilization of cultural resources, including the establishment of high-quality digital cultural services and the in-depth integration of traditional and emerging media.

Apart from the expansion of the information consumption, China will also maintain the tax reduction policies for new-energy vehicles, remove restrictions on used-car registration, and promote new forms of consumption such as shared bikes in a bid to enlarge total consumption.