BEIJING (Reuters) -China’s cabinet pledged on Friday to boost consumption by better aligning supply with demand and relying on consumption upgrades to drive industrial upgrades, according to a meeting readout aired by state broadcaster CCTV.
The cabinet also said it would create a favourable environment for consumption, and improve consumer finance products and services.
Chinese leaders have signalled a sharper shift towards supporting consumption over the next five years, as trade tensions and limited room for investment have exposed vulnerabilities.
China’s economy slowed further in October and structural imbalances persisted. Industrial output grew 4.9% year-on-year in October, hitting the lowest in over a year but still outpacing retail sales – a key gauge of consumption – which rose just 2.9%.
The government has stepped up efforts to curb overcapacity and price wars among firms to help combat persistent deflationary pressures.
“Enhancing the alignment between supply and demand is an effective measure to further unleash consumption potential,” the cabinet said at the meeting chaired by Premier Li Qiang, according to the readout.
“Industrial upgrading should be driven by consumption upgrading, and high-quality supply should better meet diverse demands, achieving a higher-level dynamic balance between supply and demand,” the cabinet said.
Firms should expand the supply of distinctive, high-quality consumer goods, and speed up the updating and upgrading of safety and green standards, the cabinet added.
(Reporting by Beijing Newsroom and Kevin Yao; Editing by Peter Graff)
