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China pledges greater reforms to chart course for sustainable growth

Xinhua | Updated: 2021-03-07 11:36
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Tourists visit an ancient town in Chongqing, June 26, 2020. [Photo/Xinhua]

TAPPING CONSUMPTION POTENTIAL

China will take expanding domestic demand as a strategic move and fully tap the potential of the domestic market, according to the report.

The move is in line with the country's prolonged transition from an investment-driven growth model to one that depends more on domestic demand, which is considered more able to withstand external shocks.

The reform on expanding domestic demand does not only mean short-term consumption stimulus, but improvements in mechanisms, including integrated urban-rural development and income distribution, analysts said.

Liu Shangxi, head of the Chinese Academy of Fiscal Sciences and a national political advisor, said that both demand-side and supply-side reforms are needed to unleash the country's consumption potential.

"It's not enough just to put more money into people's pockets to foster domestic demand. The demand is created only when there is something that people are willing to spend money on," he said.

To that end, reforms must be carried out so that resources such as land, labor and data are allocated according to market principles, Liu said.

He Lifeng, head of the country's top economic planning body, said that the country will take various measures to increase people's incomes, while at the same time creating more quality products on the supply side.

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