Upgrade consumption in era of new products

The central authorities recently introduced a new action plan to give consumption a boost.

The plan seeks to promote sustained income growth. The cost of raising children, education, healthcare and elderly care remain people's major concerns that must be addressed. In response, according to the plan, the country will establish childcare subsidy systems, enhance educational support, raise basic pensions and medical insurance subsidies for urban and rural residents, improve basic living assistance systems and strengthen industrial and employment development support.

There is great potential for demand in the service sector. Also, the market for big-ticket items such as cars, housing and home appliances remains sizable. However, with advancements in new energy and artificial intelligence technologies, products such as cars and home appliances have seen significant improvements in green and smart features. Therefore, the action plan focuses on consumption upgrades.

The plan also seeks to accelerate the development of new technologies and products, such as autonomous driving, smart wearables, ultra-high-definition video, brain-computer interfaces, robotics and additive manufacturing.

It also urges the removing of unreasonable consumption restrictions and various market entry barriers.

The plan proposes a comprehensive set of policies to support consumption. It emphasizes strengthening the coordination and linkage of consumption promotion policies, integrating fiscal, financial, industrial and investment policies with consumption policies to promote concerted efforts and form synergies, and building a more favorable policy system for consumption promotion.

It explicitly states that all regions and departments should place greater emphasis on boosting consumption, fulfill their responsibilities according to their duties, and strengthen coordination and linkage. These measures will help accelerate the effective implementation of policies aimed at revitalizing consumption.

-21st Centuary Business Herald