As the world’s second largest economy， China posted a 6.6-percent GDP growth in 2018 and has set the growth target at 6-6.5 percent for 2019. There have been concerns that the downward pressure on the economy might lead to weakening consumer spending in the country， but such worries are unnecessary.
The contribution of final consumption expenditure to China’s GDP growth rose to 76.2 percent in 2018， up 18.6 percentage points from the previous year. Consumption has been the primary driver of the country’s economic growth for several years.
The Chinese Government is sparing no effort to unlock the potential of domestic demand to shore up consumption growth.
The country will take a combination of measures this year to increase urban and rural personal incomes and boost capacity for consumption， said the government work report unveiled at the annual session of the National People’s Congress， China’s top legislature， in Beijing on March 5.
Significant steps will also be taken to develop elderly care， as the number of people in China aged 60 and above has reached 250 million. In addition， various types of infant and child-care services will be developed. The tourism industry will be strengthened and steady automobile consumption will also be maintained， according to the report.
Such moves to foster a larger consumer market not only add to the resilience， vibrancy and growth momentum of China’s economy， they also send encouraging signals to the world as the global economy is fraught with challenges including protectionism and anti-globalization.
China is home to the world’s largest middle-income group of some 400 million people， a number which is still on the rise. It is also evolving from the world’s workshop to a major consumer of goods and services. Last year， it bought $2.14 trillion worth of goods from other countries and regions.
More importantly， groups of dynamic forces are emerging such as Generation Z and small-town and rural dwellers.
Their growing demand for a better life and high-quality goods will create new business opportunities.
Japanese cosmetics manufacturer Shiseido Co. posted an 8.9-percent rise in 2018 sales. A growing market for the company， China accounted for 17.4 percent of its overall sales.
This trend is not exclusive to Shiseido. China’s huge domestic market has become a magnet for an increasing number of international enterprises. Electric carmaker Tesla decided to build a plant in Shanghai， its first outside the United States， and German carmaker BMW announced in October 2018 that it would increase its stake in the joint venture， BMW Brilliance Automotive， in the northeastern city of Shenyang， Liaoning Province， from 50 to 75 percent.
China’s imports are also rising as people’s enthusiasm for high-quality and diversified foreign goods continues to increase.
The first China International Import Expo （CIIE） was China’s latest move to increase imports. So far， more than 500 companies from all over the world have confi rmed participation in the second CIIE this year.
A huge population， growing new economic momentum， ongoing urbanization and the rising spending power of residents all point to the development of a robust domestic market in China.
As the country keeps its promises to further relax controls over market access， shorten the negative list for foreign investment and permit wholly foreign-funded enterprises to operate in more sectors， there is no doubt the Chinese market will have more potential to be unlocked.
