Opening up New Space for Growth (People's Current Review), Expanding Domestic Demand | Expanding Domestic Demand | Current Review
The bottlenecks, pain points, difficulties, and gaps in economic development are all the driving forces that can improve quality and efficiency
"The car is compact and easy to charge, and you can also enjoy a discount of 5000 yuan when buying a car." Recently, Wang Dongyan, who lives in Zouma Town, Jiulongpo District, Chongqing, spent less than 50000 yuan to purchase a new energy vehicle. "The electricity cost per kilometer is only 4 cents, and the range is also sufficient.". This is a vivid portrayal of supporting the implementation of the policy of promoting new energy vehicles to rural areas and effectively leveraging the rural automobile consumption market, as well as a concrete example of the effective implementation of the strategy of expanding domestic demand.
In the first half of the year, with the implementation of various policy measures to expand domestic demand, domestic consumption recovered rapidly, investment continued to grow, and the contribution of domestic demand steadily increased. Opening the semi annual report, the contribution rate of final consumer spending to economic growth reached 77.2%, significantly higher than last year; Fixed assets investment increased by 3.8% year on year, and effective investment continued to play a key role in stabilizing growth. A series of indicators that release warmth reflect the continuous release of domestic demand potential.
After the smooth transition of COVID-19 prevention and control, economic recovery is a process of wave like development and zigzag progress. Only when people enjoy their mobility and things flow freely can China unleash tremendous vitality and further stimulate the potential for domestic demand. Since the beginning of this year, there has been an increase in cultural and sports activities such as sports events, concerts, and theatrical performances in various regions. In the first half of the year, the per capita cultural and entertainment expenditure of residents in China increased by 38.5% year-on-year in nominal terms, and the number of people watching movies nationwide increased by 51.8%. As of June 24th, the volume of express delivery business in China has reached 60 billion pieces this year, 172 days ahead of reaching 60 billion pieces in 2019 and 34 days ahead of 2022. The tangible life confirms the steady recovery of domestic demand. The economy of a major country has significant characteristics dominated by domestic demand. Only by firmly grasping the strategic starting point of expanding domestic demand and focusing on unblocking the domestic economic cycle, can we fully utilize the precious strategic resource of the super large-scale market.
Economic development is a process of mutual influence and continuous upgrading between supply and demand. From the accelerated implementation of the Outline of the Strategic Plan for Expanding Domestic Demand and the Implementation Plan for the 14th Five Year Plan for Expanding Domestic Demand, to the orderly promotion of the construction of 102 major projects in the 14th Five Year Plan, effectively driving investment from the whole society through government investment and policy incentives; From issuing a series of policies to support housing improvement, new energy vehicles, elderly care services, home furnishings, and other consumption, to actively holding consumption seasons and issuing consumption vouchers in various regions... Various regions and departments have organically combined the implementation of the strategy of expanding domestic demand with deepening supply side structural reform, unblocking and breaking through bottlenecks, establishing mechanisms, and smooth circulation, using demand to drive supply, and using supply to create demand, so that the Chinese economy not only expands its "quantity advantage" but also enhances its "quality advantage". It has been proven that the bottlenecks, pain points, difficulties, and gaps in economic development are all the driving forces that can improve quality and efficiency. As long as we create a favorable institutional environment and adopt appropriate policy guidance, we can continuously create new economic growth points.
The recent meeting of the Political Bureau of the Communist Party of China Central Committee emphasized the need to actively expand domestic demand, leverage the fundamental role of consumption in driving economic growth, expand consumption by increasing household income, drive effective supply through terminal demand, and organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply side structural reform. By continuously deepening reforms, actively expanding domestic demand, and building a stronger domestic market, we will definitely open up new space for economic growth, and promote the qualitative and effective improvement of China's economy and the reasonable growth of quantity.
