China’s General Secretary Xi Jinping has emphasized the importance of expanding domestic demand to drive economic growth and meet the needs of the people for a better life. At a Political Bureau meeting held on December 8, Xi Jinping stressed that the strategy of expanding domestic demand is crucial in promoting stable and long-term high-quality economic development.
Xi Jinping highlighted the need to focus on expanding domestic demand as a major measure to address challenges such as weak world economic recovery and insufficient aggregate demand. The emphasis on domestic demand has been a key strategy to promote the recovery of China’s economy.
The resolute implementation of the strategy of expanding domestic demand has resulted in positive outcomes. In the first three quarters of this year, the contribution rate of domestic demand to economic growth increased to 113%, with final consumer spending contributing 83.2% to economic growth. This has proven to be effective in hedging the pressure of shrinking external demand and bolstering the overall economic recovery.
The efforts to expand domestic demand have been evident in various regions of China, with a focus on promoting consumption and stabilizing investment. Initiatives to create new experiences and form new hot spots have led to the acceleration of consumption potential and the release of new vitality in the market.
Policies aimed at optimizing income distribution have been pivotal in expanding the middle-income group and enhancing consumption capacity. The government has also implemented measures to promote continued recovery and expansion of consumption, leading to a rebound in consumer confidence and a growth in service consumption.
In addition to promoting consumption, the government has taken measures to drive social investment through infrastructure projects such as railway construction. It has been reported that from January to October, the national fixed asset investment (excluding rural households) increased by 2.9%, with high-tech industry leading investment growth.
Xi Jinping has urged the vigorous implementation of the strategy to expand domestic demand and the cultivation of a complete domestic demand system to provide strong support for building a new development pattern. The focus remains on expanding consumer demand supported by income, investment demand with reasonable returns, and financial demand with principal and debt constraints.
The emphasis on expanding domestic demand in China reflects the country’s commitment to achieving stable and high-quality economic development. As efforts continue to focus on promoting domestic demand, it is expected to further contribute to economic recovery and growth in the years to come.