[Asia Economy Reporter Kim Daehyun] The State Council of China stated that "in response to the prominent issue of 'demand shortage,' rapid recovery of consumption must become a major driving force for the economy." This emphasized the importance of consumption in the economic recovery process during this year, which is effectively the first year of 'With Corona' (gradual return to normal life).
On the second day of the Lunar New Year holiday, January 22, Chinese people are enjoying the holiday by riding ice sleds at Shichahai in Beijing, the capital of China. [Image source=Yonhap News]
According to China’s state-run CCTV on the 28th, the State Council made this announcement regarding the results of the executive meeting presided over by Premier Li Keqiang on the first working day after the Spring Festival holiday (January 21?27).
Regarding specific measures, it explained that "policies to expand consumption will be fully implemented, consumer finance (funding for purchasing consumer goods) will be reasonably increased, abundant and diverse consumption promotion activities will be organized and carried out, and the rapid recovery of face-to-face consumption will be promoted."
It also stated that, as a fundamental national policy, 'opening up to the outside world' will be maintained, supporting enterprises’ participation in domestic and international trade fairs, implementing export tax rebates, and other measures to stabilize foreign trade.
Furthermore, it added that it will uphold the principle of "two unwavering commitments," meaning the parallel development and encouragement of both the shared (state-owned) economy and the non-shared (private) economy, protect the rights and interests of private enterprises according to law, and support the continuous and healthy development of the platform economy.
Meanwhile, China recorded a growth rate of 3.0% last year, significantly below the target of around 5.5%.
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