Time to correct domestic demand fault lines

The novel coronavirus outbreak has delayed industrial production, disrupting the supply chain and weakening demand. In the long run, this has led to increased global conservatism, nationalism and populism, widening the gap between the rich and the poor and becoming a source of global economic instability. And international disputes are expected to become more complex and fierce in the times to come.

As China has largely controlled the epidemic, production has resumed, but some domestic enterprises continue to feel the pinch because of a decline in external demands following the spread of the epidemic around the world.

As the virus spread to their countries, some leaders even imposed economic and financial sanctions against China, greatly affecting Chinese enterprises.

Although China is undertaking supply-side structural reform, there are also concerns about uncertain domestic demand, making the country prioritize on how to tap domestic demand to boost economic development.

Which is why, speaking to members of the National Committee of the Chinese People's Political Consultative Conference, the top political advisory body, on Saturday, during the ongoing two sessions, President Xi Jinping stressed on greater efforts to build a system to meet domestic demands.

Given that insufficient domestic demand is closely related to unfair income distribution and the widening wealth gap, the country should focus on people-centric income distribution. Investment and consumption constitute an important part of China's economic growth, but with the expansion of the economy and market, it has become increasingly necessary for the market to play a decisive role in the allocation of all factors, so as to activate the enthusiasm of market players. Direct management should be relaxed to minimize government intervention into micro economic activities, but supervision should be strengthened.

Major country competition is essentially competition between productive forces, whose core is competition between scientific and technological innovation capabilities. The world today is in the throes of a new scientific and technological revolution and industrial transformation, and as a major country, China must unswervingly promote self-reliant scientific and technological innovation to remove bottlenecks in the path of development.

The huge resilience of China's economy and Chinese people means China has the potential to tap and activate domestic demand and market vitality, and boost its economic transformation and upgrading.