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By Wang Wei & Wang Qing, DRC

2017-4-5

At present, the development of China’s economy and society is experiencing a critical period of structural adjustment and driver replacement. The cultivation of international consumption centers is an important way to further expand and enhance consumption and accelerate the formation of a new consumption-driven pattern of development. This will provide strong support for deepening the supply-side structural reform, improving the quality of urbanization drive and cultivating new global competitive edges.

Existing problems and obstacles. 1. The ineffective supply of goods and services has made a large number of consumers go shopping in foreign market. 2. The infrastructure facilities to attract consumers are inadequate. 3. Some institutional and systematic arrangements have hindered the promotion of consumption upgrading and innovation motives. For instance, relevant laws and regulations are not in place, the construction of standardized system building is lagging behind, market regulations need to be fleshed out, and market access threshold needs to be lowered.

Some policy options for future development. We need to follow the consumption trends and demands of domestic consumers, and refer to the international experience relating to the development of international consumer centers. 1. We need to strengthen the supply-side reform and actively expand the supply of medium-to-high-ends of consumer goods. 2. We need to shore up weak spots, strive to build a number of new consumer shopping malls that can attract and draw over customers both from home and abroad, and cultivate new carriers for consumption development. 3. We need to fully optimize the environment, encourage local governments to establish comprehensive law enforcement agencies, and promote the overall construction of social credit system. 4. We need to step up the reform, further relax control for market access in the field of emerging consumer services, and encourage private capital to make investment. 5. We need to actively set up demonstration centers. The government needs to work out a reasonable layout and actively carry out innovative pilot practice so as to promote the new momentum for consumption.