CPC Central Committee and State Council Call for Improvements to Systems and Mechanisms on Stimulation of Consumption to Spur Potential Residential Consumption
The Central Committee of the Communist Party of China ("CPC") and the State Council have recently issued the Several Opinions on Improving Systems and Mechanisms on Stimulation of Consumption to Further Tap the Potential of Residential Consumption (the "Opinions").
The Opinions propose to realize a smoother cycle of consumption and production, significantly optimize the consumption structure, and achieve a safer consumption environment. Accordingly, the Opinions outline definite measures in three respects. The first is forming more mature market segments for consumers to strengthen new consumption growth drivers. The second is improving the quality standards and the credit system to create a safe consumption environment. The third is introducing better supporting policies and strengthening publicity and guidance, to improve residents' consumption power and expectations. Moreover, the Opinions specify seven major consumption growth drivers, including the consumption of physical products and the consumption of services. The former includes the consumption of food, clothes and daily necessities, the consumption of accommodation and transportation, information consumption, green consumption, among others, while the latter covers the consumption of culture, tourism and sports, the consumption of healthcare, elderly care and housekeeping, the consumption of educational training and nursery care, etc. In particular, the Opinions propose to establish a diversified supply system for green products, and manufacture a wider variety of green consumer goods, such as energy-efficient and water-saving products, products made from renewable resources, environment friendly products, green construction materials, and new energy vehicles.