The South China Morning Post (December 31) disclosed that a new five-year (2021-25) document says
domestic trade must play an increasingly important role in shoring up national economy. The document tasks
22 state departments, including the National Development and Reform Commission, the Ministry of
Commerce, and the People’s Bank of China, and said there was an urgent need to establish a strong domestic
market to counter the turbulent external situation. China is expecting to see about 50 trillion yuan (US$7.85
trillion) in retail sales by 2025. It said, “The international political and economic situation is complex and
changeable, the uncertainty and instability has obviously increased, and the impact of the Covid-19 epidemic
situation is extensive and profound.” The document added "“The world economy is in a downturn; economic globalisation has encountered headwinds; traditional and non-traditional security threats are intertwined and
rising; the world has entered a period of turbulence and reform; and the security and stability of industrial
chains and supply chains are facing major challenges, so the role as a ‘ballast stone’ and ‘stabiliser’ of
domestic demand has become more prominent.” It emphasised the urgency "to improve the quality and
capacity of consumption, to unleash the potential of domestic consumption, and to build a strong domestic
market.” It said, “Opportunities to develop domestic trade are unprecedented, while challenges are
unprecedented.” The new five-year plan also said China intends to attract foreign capital to invest in the
domestic trade sector by leveraging its “extra massive” market potential in the country, such as by
introducing high-quality products, advanced technology, and management expertise. The five-year plan also
calls for the strengthening of reserve and emergency supply systems, while beefing up resistance to shocks
in the global supply chain.
(Comment: China's retail sales, which are a key gauge for a nation’s consumption, totalled 39.2 trillion yuan
in 2020 but failed to meet the target of 48 trillion yuan that Beijing set when it released its previous five-year
plan in 2016.)
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