- Week-long China International Consumer Product Expo, which kicked off on Monday, is the first major international expo held in China after Beijing reopened its borders
- Vice-Premier He Lifeng said China will ‘place the recovery and expansion of consumption as a topmost priority’
According to The South China Morning Post article published on April 10, 2023, consumption, a critical driver to China’s post-pandemic economic recovery, will be a vital bridge between domestic and international markets amid efforts to increase investment from multinational companies, Vice-Premier He Lifeng said on Monday during the opening ceremony of an international consumer expo.
“We will spare no effort to expand domestic demand, place the recovery and expansion of consumption as a topmost priority, and further give play to the role of consumption as a foundation for the economy,” He said during the opening ceremony of the third China International Consumer Product Expo in Haikou, Hainan province.
The week-long event is the first major international expo held in China after Beijing reopened its borders.
The expo is expected to send a strong message to global investors that China’s market still holds vast potential amid its economic rebound, with authorities already having attached great importance to consumption.
”We are ready to cooperate with entrepreneurs to jointly explore new growth points in consumption.” He Lifeng
To reach the goal, China will roll out more robust measures and events to boost spending, increase incomes, while also creating new services and accommodating new consumer needs, He said.
“We are ready to cooperate with entrepreneurs to jointly explore new growth points in consumption,” he said.
“We sincerely welcome more multinational companies to deep plough the Chinese market and expand investment.”
In the past few years, China’s economy, especially consumer spending, has been crippled by stringent virus restrictions, a weakening property sector and regulatory crackdowns.
Consumption accounted for 32.8 per cent of China’s gross domestic product growth in 2022, down from 54.5 per cent in 2021, and still well short of over 80 per cent for many developed countries.
More than 3,100 brands from over 60 countries will take part in the expo, while leaders from provincial governments, international organisations, CEOs of Fortune Global 500 companies and purchasers will also participate.
Radovan Viskovic, the prime minister of the Republika Srpska – one of the two autonomous entities that makes up Bosnia-Herzegovina – said during the opening ceremony that China and Hainan’s development will provide more opportunities for his country, especially in terms of infrastructure projects.
The southernmost island province of Hainan is China’s largest special economic zone and is being transformed into a world-class free-trade hub and a global centre for tourism and consumption.
The free-trade port, with an independent customs regime set to be in place by the end of 2025, is expected to be a game-changer for China’s economy, and is set to form a crucial part of the so-called dual circulation economic strategy that is a shift from China’s decades-old export-oriented development model.
