Improve consumption for high-quality growth

The central authorities have recently called on boosting consumption, namely enhancing the purchasing power and willingness of middle-and low-income groups. This cannot be separated from increased income, as income growth directly enhances residents' purchasing power and stable income growth increases people's willingness to consume.

By 2023, consumption had been the primary driver of China's economic growth for 10 consecutive years. Compared to boosting consumption among those with middle- and above-middle incomes, there is greater room for improvement in incomes for those with lower incomes. By raising minimum wage standards, increasing employment opportunities, and optimizing tax policies, these groups' disposable income can be directly or indirectly increased.

Further, since low-income groups in the country are primarily located in rural areas, improving the income of rural residents can enhance the consumption capacity of middle- and low-income groups.

By promoting the development of emerging industries such as agricultural product processing, rural tourism, and e-commerce, not only can more job opportunities be created but also it can promote further optimization of the country's industrial structure and tap into the potential of the primary industry. This is also conducive to further driving up the income of rural residents and narrowing the urban-rural gap. Structural optimization requires the participation of all sectors helping with agricultural technology promotion, innovation in rural financial services, infrastructure construction, and education and training in digital marketing methods.

With the upgrading of China's economic structure and the increase in residents' income levels, consumption should play a key role in promoting growth. Economic policies will inevitably need to shift more toward benefiting people's livelihoods and boosting consumption.