Consumption potential big, experts say

China's super-large consumption market still holds enormous potential and serves as an important engine to drive economic growth, despite the increasing complexity and uncertainty of the external environment.

Industry experts and top executives made the remarks during the 5th China International Consumer Products Expo, which opened on Sunday in Haikou, Hainan province. The expo runs through Friday.

Chinese Vice-President Han Zheng attended the opening ceremony and announced the opening of the event.

Amid tariff increases by the United States and growing economic fragmentation worldwide, consumption is playing an important role in driving domestic economic growth.

China wields great power when it comes to tackling trade conflicts, as it has a huge consumption market with 1.4 billion consumers, and with the ongoing consumption upgrade trend, the country has a lot of opportunities to expand the domestic trade market, said Peng Jianzhen, president of the China Chain Store and Franchise Association.

"When faced with difficulties, we unite as one and work together to distribute high-quality foreign trade products to the domestic market. That's where China's confidence of taking countermeasures comes from," Peng said.

Zhang Xiangchen, deputy director-general of the WTO, delivered a speech via video link to the expo and said that a stable and predictable international trade system based on fair and transparent rules is essential for sustained global prosperity. History has shown that while protectionist policies may offer short-term benefits, they ultimately hinder long-term economic growth.

Speaking at the expo, Sheng Qiuping, vice-minister of commerce, said with the increasing complexity of the external environment, China's foreign trade is bearing certain pressures.

"With continuous efforts of various policies to expand domestic demand and promote consumption, residents' consumption ability is gradually improving, and new technologies and new business formats have continued to emerge in the country. The advantages of China's super-large scale market are expected to become more prominent," Sheng said.

In the first two months, the total retail sales of consumer goods in China reached 8.37 trillion yuan ($1.15 trillion), up 4 percent year-on-year, with the growth rate 0.5 percentage points higher than all of last year, the ministry said.

German carmaker Volkswagen Group participated in the expo for the third time this year, and it is bullish on the growth potential of Hainan, as well as China's further reform and opening-up prospects.

"Since 2020, we have added another 10 billion euros of investment in China, and in 2023, we invested 7 billion yuan to build the world's largest research and development center outside of Germany and in China. This also indicates that China has become a global source of technological innovation," said Su Bahong, vice-president of Volkswagen Group China.

Meanwhile, British luxury brand Burberry has been a five-time participant of the expo. The company said over the years, it has seen the expo as an important platform to help further boost consumption and expand high-quality development in the Chinese market.