Green consumption growth takes root

Cheng Qiang, chief macroeconomic analyst at CITIC Securities, said the economic recovery momentum is likely to extend into the second half of this year, adding that China's GDP will probably grow by about 6 percent in the third and fourth quarters.

Zhao Ping, deputy head of the Academy of China Council for the Promotion of International Trade, which is based in Beijing, said the nation's consumer market will maintain growth momentum this year, fueled by a rise in disposable income, the continuous recovery of supply chains, and a series of measures to spur consumption.

Enterprises should be encouraged to use new-generation information technologies such as big data, cloud computing and artificial intelligence to create new types of green and intelligent consumer goods, and cultivate new consumption growth points, Zhao Ping said.

More efforts are needed to further cut taxes and fees to help micro, small and medium-sized enterprises and the self-employed hit hard by the pandemic overcome their difficulties, she added. Efforts are also required to create more jobs, increase incomes and ensure the smooth operation of logistics and supply chains to encourage consumption.

Key measures

Zhang Xun, managing director of Accenture Strategy & Consulting Greater China, is upbeat about the medium- and long-term development of the consumption market. He said upgrading distribution channels and services in lower-tier cities and rural areas remain key measures to fuel a consumption recovery in China.

According to a notice issued by the Ministry of Commerce and 16 other central government departments on July 7, the authorities are considering extending purchase tax exemptions for new energy vehicles, or NEVs. The exemptions are due to end on Dec 31.

The notice stated that more should be done to encourage purchases of NEVs in rural areas, speed up construction of charging facilities, and help charging point operators lower their fees.

The owners of some 1.09 million vehicles benefited from the halved purchase tax last month, with the combined relief totaling 710 million yuan, according to the State Taxation Administration.

According to the State Council, vehicle purchase tax cuts nationwide could total 60 billion yuan by the end of this year. Ping An Securities said the figure would account for 17 percent of the vehicle purchase taxes levied last year.

Local authorities in cities nationwide have rolled out their own packages, offering consumption vouchers worth up to thousands of yuan.