China has the potential to develop a robust domestic market: experts

Experts and industry insiders believe that China has the potential to develop a big domestic market, expand consumption, and facilitate effective investment.

The size of the Chinese market has already grown, so much so that it is now one of the big global players. During the “Double 11”shopping spree in 2018, transactions worth more than 10 billion yuan were created through Alibaba’s online marketplace Tmall in just two minutes and five seconds.

A consumer named Fu Ping explained that over the last few years, she has noticed a larger selection of goods to put into her shopping cart, and the quality is also improving.

China has the potential, demand, and conditions to develop a robust domestic market, said Wang Wei, an economist with the Development Research Center of the State Council.

Chinese consumers are now enjoying a higher level of consumption, which indicates excellent potential for consumption upgrade, said Wang Yuanhong, an economist at the State Information Center.

Wang Yuanhong said the divergence between different groups, regions, and industries could be mitigated by the new types of industrialization, informatization, urbanization, and agricultural modernization.

The economist said China should concentrate on its own affairs, believing that fostering a sizeable domestic market will create steady growth and employment, build economic resilience and optimize economic structure.

Jiang Feng, president of the China Household Electrical Appliances Association, said the industry had created a research and development team to improve the quality of home appliances, which in turn generates new consumption demand among consumers.

Wang Wei said, on the one hand, favorable policies such as special individual income tax deductions should be implemented promptly, so that consumers have more disposable income. On the other hand, she said public services should be improved, such as healthcare and elderly care, so that consumers feel more assured.

Wang Wei suggested that new consumption points should be created by elevating the level of consumption, accelerating diversified development of the modern service industry, and fostering new consumption modes.

Additionally, experts have said that the government should place investment in key areas that will create effective supply.

He Lifeng, head of the National Development and Reform Commission (NDRC), suggested the country reinforce efforts to boost major technical equipment capabilities, renovate traditional industries, foster new growth drivers, promote effective investment in key areas, and provide higher-quality products and services to the customers.