So Motorcycle Economic Growth, China Launches Year Of Consumption Promotion In 2024

Economic illustration (Photo: Antara)

JAKARTA - China declared 2024 as "Consumption Promotion Year". This is to increase domestic demand as a motor for the economic growth of the Bamboo Curtain country.

"This year we set it as the 'Consumption Promotion Year' with the keyword 'continuous expansion'. We will work with ministries and local governments to organize various promotional activities to encourage public consumption," Chinese Trade Minister Wang Wentao said, quoting Antara.

The Chinese government, Wang Wentau said, would combine traditional festivals, national holidays, and other shopping events including online shopping festivals to celebrate spring, winter or other celebrations.

"Now an online New Year's Festival is underway, for example by buying gifts for family and friends. Another example, we will highlight local characteristics and support all regions to explore their own advantages and develop iconic events for each region," Wang said.

He gave an example of the "Beijing-Tianjin-Hebei Consumption Season", "Shanghai's Five-Year Shopping Festival", "Zheli Consumption" in Zhejiang, and "Aishang Chongqing" in Chongqing as moments of increasing public consumption.

"We will also encourage the trade in cars and household appliances. Both are key points in encouraging consumption this year," said Wang.

According to data from the Chinese Ministry of Trade, the number of cars is around 340 million units in 2023 and major household appliances such as refrigerators, washing machines, and air conditioning exceed 3 billion units in the same period.

At the same time, cars and household appliances are very systematic types of goods, requiring production, supply and marketing from upstream and downstream supported by the government, companies and communities both online and offline.

"So we will strengthen the improvement of technology, energy consumption, emissions and other standards as an attraction as well as stabilize and expand traditional consumption in order to meet the need to replace the two types of goods," added Wang.

The next way to encourage consumption according to Wang is to promote "domestic trendy products".

"Now, domestic products are of high quality and carry a leading traditional culture. We identify 300 'China flagship brands' in accordance with relevant regulations and standards. These brands meet the market's desire for fashionable, special and personal goods, so consumers like them, especially the younger generation," Wang explained.

Wang also admitted that the external situation for foreign trade in 2024 is increasingly complex and complicated.

"On the one hand, demand has indeed weakened, as estimated by the International Monetary Fund (IMF) which states that global economic growth will slow down to 2.9 percent. On the other hand, unfavorable environmental conditions, increased trade protectionism, geopolitical conflicts and conflict escalation such as recent shipping lane blockades in the Red Sea, have disrupted international trade," said Wang.

China's National Bureau of Statistics (NBS) said China's Gross Domestic Product (GDP) was 5.2 percent in 2023, reaching 126.06 trillion yuan (about 17.71 trillion US dollars).

Of this amount, domestic consumption is the largest contributor, namely 82.5 percent.

Meanwhile, China's export and import sectors in 2023 reached 41.76 trillion yuan, or grew by 0.2 percent compared to 2022. Foreign investment in China in the same period was 163.25 billion US dollars or equivalent to 1.13 trillion yuan or lower than in 2021 and 2022.

However, the Chinese government said that China's investment structure was getting better with investment in the high technology industry reaching 37.4 percent (an increase of 1.3 points compared to 2022) and the manufacturing sector (27.9 percent), an increase of 1.6 percent compared to 2022.