China's weak consumer spending needs new policies, says top Beijing adviser
BEIJING's usual policy prescriptions are outdated and will not be successful in igniting consumer spending, said a prominent adviser to the central government, reported Hong Kong's South China Morning Post
02 February 2021 - 19:00
Despite China rapid recovery from the Covid shock, more policy efforts to redistribute income and improve public welfare are needed, as well as more direct support for individual consumers, said Wang Yiming, vice-chairman of the China Centre for International Economic Exchanges.
Mr Wang, former deputy head of the Development Research Centre of the State Council, he personally advised Chinese President Xi Jinping on policy several times last year.
'We are very experienced in guiding investment, and we have formed a set of effective methods,' Mr Wang said at an online seminar. 'But when it comes to guiding and expanding consumption, our means are relatively limited, and their effectiveness is not particularly significant.'
Analysts have expressed concerns amid the lingering weak recovery in domestic consumption, which is lagging behind a strong rebound in industrial production, investment and trade.
If consumption remains relatively weak, it could not only undermine the sustainability of China's V-shaped rebound but could also impair the world's second-largest economy in the longer term, analysts said.
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