Boao Forum For Asia Discusses China's Consumer Market Potential

The problem of imbalance in China's economic demand has come to a time when external demand is pulling and investment is high. It was held in the year 12th Five-Year. Boao forum for Asia On top of that, both government officials and entrepreneurs believe that expanding consumption demand is the top priority of the 12th Five-Year economic work.

At the same time, some experts said that while promoting consumption, they must also manage well. inflation expectations 。

　 Actively developing new consumption formats

Zhang Ping, director of the national development and Reform Commission, stressed the need to expand domestic demand and expand consumer demand as the strategic focus of expanding domestic demand in a keynote speech at the Forum on "policy interpretation: 12th Five-Year plan" 15. "An important part of changing the mode of economic development is to build the momentum of development on the basis of expanding domestic demand." Zhang Ping said.

In order to expand domestic demand, especially consumption demand, China will introduce a series of policies during the "12th Five-Year" period. According to Zhang Ping, these policies include expanding the consumption capacity of the residents, placing the employment in a strategic priority position, adjusting the distribution pattern of national income and increasing the income of the residents; further establishing and improving the social security system, and solving the worries of residents, especially increasing the expenditure on education and medical care, and optimizing the consumption environment at the same time.

At the same time, the government will be active. Developing new consumption formats It will promote consumption of culture, tourism, fitness and support for the elderly, and expand new consumption areas.

Zhang Ping is very optimistic about the potential of China's consumer market expansion. He pointed out that China has a population of 1 billion 300 million, accounting for 20% of the world's total population. Strengthening the construction of weak links in social and economic development will provide huge room for expanding consumer demand.

Wei Jiafu, President of COSCO Group believes that China's population is large and its consumption is large. In the case of invigorating circulation, it is possible to take the lead in realizing the goal of a powerful trade nation.

More and more multinational companies also take note of the potential of China's consumer market. According to CEO Ma Zhiqiang of DDT Asia Pacific region, at the round table conference of multinational corporations in Boao on 14 th, CEO of multinational corporations generally believed that China was not only a manufacturing base, but also a potential consumer market.

Reporters noted that the government urged consumption, and the current lack of consumption is not related. According to the data released by the National Bureau of statistics, the total retail sales of consumer goods in China in 2010 amounted to 29018 billion yuan, up 15.8% from the same period last year, 3.3 percentage points lower than that in December of December. In February, the total retail sales of social consumer goods amounted to 13769 billion yuan, up only 11.6% from the same period last year.

　　 CPI high to increase inflation expectations

While vigorously promoting consumption, the rising CPI has made this year's economic growth uncertain. At the 2011 Annual Meeting of the Boao forum for Asia held on 15, a number of people including the NDRC and SASAC officials said that inflation expectations were increasing, which not only made economic development uncertain, but also brought great difficulties to the operation of enterprises.

Data released by the National Bureau of statistics on 15 may show that CPI was 5.4% in March, the highest level in 32 months, and CPI grew by 5% in the first quarter. PPI is also at a high level. Data show that producer prices for industrial producers rose 7.1% in the first quarter compared with the same period in March, rising by 7.3% in the first quarter and 0.6% higher than the previous month.

Zhang Xiaoqiang, deputy director of the national development and Reform Commission (NDRC), said on 15 October at the Boao forum for Asia that China's inflation mainly came from imported inflation caused by rising commodity prices.

In fact, driven by commodity prices, not only domestic price pressures, but also global inflationary pressures. In BRICs, the inflation rates in Russia, India and Brazil in February were 9.5%, 8.31% and 6% respectively, and the euro area inflation rate reached 2.6% in March, the highest level since October 2008. The CPI trend of the US is also very obvious.

Huang Shuhe, deputy director of the SASAC of the State Council, also reminded attention to inflation in the forum. He said yesterday at the Boao forum "risk management" sub forum that there are large uncertainties in economic development this year. From the domestic point of view, the main reason is that inflation expectations are increasing and raw material prices are rising at a high level. In this context, monetary policy is tightening.

However, it should be noted that the current inflation rate is still within the limits of affordability. Dai Xianglong, chairman of the national social security fund, said at the forum yesterday that although 5% of inflation has pressure on the healthy development of China's economy, it is absolutely acceptable.