HolidayinlateJanheraldsspendingspree,demandsurgeasgreen,smartgoodsrise

ThehustleandbustleofmarketplaceshavereturnedtoChina,especiallyduringtheSpringFestivalholidayinlateJanuary,raisingexpectationsthattheoptimizationofCOVID-19responsemeasures,combinedwithpoliciessupportiveofconsumption,willhelptheconsumermarkettoregaingrowthmomentumthisyear,expertssaid.

China"sconsumptionsector,includingretail,catering,tourismandmoviesegments,wereseverelyhitbytheCOVID-19pandemic.Allofthem,however,havepostedastrongrecoveryintheearlypartofthisyearwhenpeopleswarmedshoppingmalls,restaurants,cinemasandtouristattractionsduringtheweeklongChineseNewYearholiday,tosatisfytheirpent-upconsumptiondesire.

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TherobustrecoveryinconsumerspendingduringtheholidayshowcasedtheenormousvitalityandstrongresilienceofChina"seconomy,theworld"ssecond-largest,andwillgiveastrongboosttothecountry"seconomicrebound,industryanalystssaid.

Theyemphasizedthatboostingconsumptionisacrucialstepforexpandingdomesticdemand,andtherecoveryofconsumption,morethaninvestment,isseenascriticaltoChina"seconomicreboundthisyear.

InthecontextoftheSpringFestivalholiday,salesrevenueofChina"sconsumption-relatedsectorsrose12.2percentthisyearoverthecorrespondingperiodoflastyear,datafromtheStateTaxationAdministrationshowed.Thefiguresawanaverageannualgrowthof12.4percentcomparedwiththepre-pandemicSpringFestivalholidayin2019.

Retailandcateringenterprisesreporteda6.8percentyear-on-yeargrowthintheirrevenuesduringtheJan21-27holiday,accordingtotheMinistryofCommerce.

Salesofcereal,oilandfoodstuffsgrewby9percent,clothingby6percent,goldandjewelryby4.4percentandautomobilesby3.6percentatretailenterprisesmonitoredbytheministry.

Theconsumptionofcatering,hospitalityandotherlifestyleservicesalsosawastrongreboundduringtheholiday,whileconsumers"spendingondine-inservicesatrestaurantsandeateriessurged15.4percentcomparedwiththesameperiodoflastyear.

ThepopularityofonlineshoppingincreasedamongChineseconsumers.E-commerceplatformJD"son-demandretailserviceShopNowreportedthatbetweenJan21and27,itsoverallsalesincreasedby90percentovertheSpringFestivalholidaylastyear.

Giftboxes,fruits,alcoholicbeveragesandmobilephoneswerethemostpopulargoodsboughtduringtheweeklongholiday.

SalesofsmarthealthmonitoringproductsonJDShopNowincreasedmorethantenfoldyear-on-year,whiletheturnoverofmassagedevices,electrickettlesandairpurifiersdoubledduringthisperiod.Thetransactionvolumeofkitchenapplianceslikefloor-cleaningrobots,cookingmachinesandairfryersincreasedbymorethaneighttimescomparedwiththepreviousyear.

Whileglobaleconomicgrowthisprojectedtodeceleratefromanestimated3percentin2022to1.9percentthisyear,China"sgrowthisexpectedtoimprovemoderatelythisyear,accordingtoaUnitedNationsreport.

WiththeChineseauthoritiesadjustingCOVID-19containmentpoliciesinlate2022andeasingmonetaryandfiscalpolicies,China"seconomicgrowthisforecasttoaccelerateto4.8percentin2023,saidtheUNreport.

China"sGDPexpanded3percentyear-on-yearin2022to121.02trillionyuan($17.59trillion),accordingtotheNationalBureauofStatistics.Consumptioncontributedto32.8percentofChina"seconomicgrowthlastyear,drivingGDPgrowthby1.0percentagepoint.

"ConsumptionplaysafundamentalroleinChina"seconomicdevelopmentandisthemaindrivingforceboostingeconomicgrowth,"saidWangYun,aresearcherattheAcademyofMacroeconomicResearch,whichisaffiliatedwiththeNationalDevelopmentandReformCommission,thecountry"stopeconomicregulator.

Wangsaidsheisoptimisticthatconsumptionmomentumwillbemaintainedthisyear,withthegrowthrateexpectedtoexceed6percent."WehaveobservedthatChineseshoppershaveattachedgreatimportancetosafetyandhealth,andprefertobuyhigh-qualityproducts.Health-relatedcommoditieslikenutritionalproducts,medicineandfitnessequipmenthavebeenincreasinglyfavoredbyconsumers."

WuChaoming,deputydirectoroftheChasingInternationalEconomicInstitute,saidthecontinuedoptimizationofCOVID-19containmentpolicieswillsignificantlybolsterconsumptiongrowthandstimulateresidents"appetitetotravelandspendthisyear.

PercapitaconsumptionexpenditureamongChineseresidentsisexpectedtogrowbetween8percentand12percentthisyearcomparedwith2022,whileretailsalesofconsumergoods,avitalconsumptionindicator,willincreasebetween7percentand11percent,Wuestimated.

"WeexpectChina"seconomicgrowthin2023tobemuchhigherthanthatofthepreviousyear,mainlydrivenbyconsumption,"saidRobinXing,chiefChinaeconomistwithMorganStanley,whileexpressingoptimismthatservice-relatedconsumptionwillgrowthisyear.

Thedomestictourismmarketalsowitnessedarobustrecoveryduringtheholidaywith308millionvisits,up23percentyear-on-year,recoveringtoabout88.6percentofthe2019level,generatingarevenueof375.8billionyuan,up30percentyear-on-yearandrecoveringto73percentofthe2019level,accordingtotheMinistryofCultureandTourism.

DatafromonlinetravelserviceproviderTrip.comGroupshowedoutboundtravelorderssurged640percentyear-on-yearduringtheholiday,whileChinesemainlandtourists"bookingsforoverseashotelsandinternationalflightticketsbothsoaredmorethanfourtimesoverthesameperiodoflastyear.

JustinKoh,seniorvice-presidentatglobalconsultingcompanyAlixPartners,said:"Weanticipatedtheresumptionoftravel,startingwiththeChineseNewYearholiday.Thenumberofinternationalflightswillriseinthesecondquarterofthisyear,whichisexpectedtohelpboostleisureandbusinesstravelbothathomeandabroad."

CinemasacrossChinawelcomedmoviegoerswithabunchofhighlyanticipatedblockbustersduringthisyear"sSpringFestivalholiday.Some129millionticketsweresold,generatingawhopping6.76billionyuaninbox-officereceipts,upnearly12percentfromthecomparableperiodof2022,accordingtotheChinaFilmAdministration.Theearningsmadethisyear"sholidaythesecond-highestgrossingtodate.

BaiMing,deputydirectorofinternationalmarketresearchattheChineseAcademyofInternationalTradeandEconomicCooperationinBeijing,said:"China"sconsumermarkethasseenrecoveryofgrowthduringtheholiday,whichindicatesthevitalityofdomesticconsumptionandtherestorationofconsumerconfidence,andmaybodewellforChina"seconomicperformancethisyear,thankstotheoptimizationofCOVID-19controlmeasures."

AnarticlebyXiJinping,generalsecretaryoftheCommunistPartyofChinaCentralCommittee,onmajorissuespertainingtothecountry"scurrenteconomicworkwaspublishedinthisyear"sfourthissueofQiushiJournal,aflagshipmagazineoftheCPCCentralCommittee,onFeb16.

Itstresseseffortstoexpanddomesticdemandbyprioritizingtherecoveryandexpansionofconsumption,andeffectivelydrivinginvestmentofthewholesocietythroughgovernmentinvestmentandpolicyincentives.

Consumptionreboundisakeythemethisyear.Thetone-settingCentralEconomicWorkConferenceinmid-DecembersaidthatChinawillfocusonboostingdomesticdemandbyprioritizingtherecoveryandexpansionofconsumptionin2023.Thereporttothe20thNationalCongressoftheCommunistPartyofChinainOctoberstressedtheneedtoexpanddomesticdemandandbetterleveragethefundamentalroleofconsumptioninstimulatingeconomicgrowth.

Inaddition,theStateCouncil(China"sCabinet)executivemeetinginlateJanuaryurgedmeasurestoacceleratetherecoveryofconsumptionasthemaineconomicdrivingforce,andcalledforpoliciessupportingconsumerservicebusinessesandself-employedindividualsandpromotingtheconsumptionofcarsandotherbig-ticketitemstobefullyimplemented.

Localgovernmentsacrossthecountryhaveacceleratedstepstorolloutfavorablepoliciestoboostconsumptionlikedistributingshoppingvouchers.Shanghaiunveiledanactionplanincludingpurchasetaxexemptionsfornewenergyvehiclesandvouchersforsectorslikeculturaltourismandcatering.

TheauthoritiesinShenyang,capitalofLiaoningprovince,launcheda100millionyuanvouchercampaignfromJan10toFeb28toboostsalesofautomobilesandhomeappliances.

ThegovernmentinTianjindistributedshoppingcouponsworth115millionyuan,whileBeijing"sFangshandistrictissued1millionconsumptionvoucherstoencouragespendingintheculturalandtourismsectorfromJan11toFeb2.

Chineseshoppersunleashedtheirpent-uppurchasingdemandduringtheSpringFestivalholiday,andtheirconsumptionlevelalmostreturnedtothepre-pandemiclevel,saidPanHelin,co-directoroftheDigitalEconomyandFinancialInnovationResearchCenteratZhejiangUniversity"sInternationalBusinessSchool.

China"sconsumptiongrowthisestimatedtoreachabout6.7percentthisyear,saidWangTao,headofAsiaeconomicsatUBSInvestmentBank,whopredictedthisyear"sGDPgrowthwillbeabout5percentandthegrowthoffull-yearnominalretailsaleswillreachabout9percent.

"Chinaboastsasizableconsumptionmarket,withimmensedevelopmentpotentialandresilience.Thekeytostabilizingeconomicgrowthismaintainingstableconsumptiongrowth,"saidZhaoPing,deputyheadoftheAcademyofChinaCouncilforthePromotionofInternationalTrade,whichisbasedinBeijing.

Shealsourgedmoreeffortstoencourageenterprisestousenew-generationinformationtechnologies,suchasbigdata,cloudcomputingandartificialintelligencetocreatenewtypesofgreenandintelligentconsumergoodsandcultivatenewconsumptiongrowthpoints.