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China Daily Website

Sustainable consumption growth

Updated: 2013-03-29 22:11
( chinadaily.com.cn)

To solve the problem of lackluster market demand, we should strictly check high-end consumption using public funds, and provide more welfare to the public to promote consumption, says an article in Beijing Youth Daily. Excerpts:

According to the National Bureau of Statistics, this January and February the growth rate of consumer goods retail sales dropped 2 percent compared to December, and the catering sector's income grew only 8.4 percent. The National Development and Reform Commission said that the lack of market demand, especially the drop in high-end catering consumption had a negative influence on total consumption.

Since last year, the central government has implemented several policies to strictly practice economy and prevent extravagance and waste, which has remarkably reduced high-end consumption using public funds, especially in the catering industry. From the beginning of this year, the turnover of high-end restaurants in major cities has seen a dramatic decline.

It's unreasonable to blame the central government's policy of practicing frugality for the problem of weak market demand. And that's what the National Development and Reform Commission means. Consumption using public funds should be strictly controlled according to laws and regulations. The public funds should be used to improve the social security system, public services and people's welfare. Only when common people don't need to worry about medical treatment, education and other basic needs, will they be willing to spend more money and overall social consumption will increase. After consumption using public funds being checked, will the prices of social consumption goods return to a more reasonable level, which is also conducive to promoting consumption.

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