China's Xi vows to help consumers spend 'without worries'

BEIJING – China will establish a long-term mechanism for boosting consumption so that consumers will have stable incomes and can spend “without worries”, President Xi Jinping was quoted as saying by state media on Wednesday.

China must resolutely implement a strategic plan for expanding domestic demand, alongside efforts to push supply-side reforms, state media quoted Mr Xi as saying in a study session of the Politburo, a top decision-making body of the ruling Communist Party.

“We will establish and improve a long-term mechanism to expand residents’ consumption, so that residents can consume with stable incomes, dare to spend without worrying about the future and have a strong desire to spend in a good consumption environment,” Mr Xi said.

Since the agenda-setting Central Economic Work Conference in December, top policymakers have repeatedly vowed to focus on bolstering consumption to drive an economic recovery in 2023.

Meanwhile, China will improve its investment mechanism, expand effective investment space, appropriately advance new infrastructure construction, and expand investment in high-tech industries and strategic emerging industries, Mr Xi said.

China will continue to spur private investment, he added.

The world’s second-largest economy grew 3 per cent in 2022, far below the official target of around 5.5 per cent and hitting one of its worst rates in nearly half a century.

Growth is expected to rebound to around 5 per cent in 2023, after Beijing ditched harsh Covid-19 restrictions in early December. REUTERS