China announces further steps to unleash rural consumption

Chinese authorities on Monday released a guideline on promoting the high-quality development of rural circulation, as part of a national campaign to build a nationwide unified market and unleash the consumption potential of rural areas to ensure long-term stable economic growth.

The guideline, issued by nine Party and state agencies, laid out the development goals, key tasks and policy support for the country to accelerate the construction of a modern rural circulation system in the years ahead.

According to the guideline, by 2025, the construction of China's rural modern circulation system will achieve phased results, meaning improved infrastructure, modern commerce, logistics and production and cold-chain networks. By 2035, China will finish building an efficient and smooth rural modern circulation system, with deep integration in areas such as commerce, logistics, transportation, agricultural and supply and demand.

The guideline stressed that high-quality development of rural circulation is crucial for a series of national strategies, including dual circulation, the nationwide unified market, rural vitalization and domestic demand expansion.

The guideline comes as the country has in recent days taken several steps to boost various aspects of rural development. Also on Monday, Chinese authorities issued a three-year action plan to further strengthen the nation's county-level commerce system, as part of the effort to promote the integrated development of urban and rural areas and vitalize the nation's rural areas.

According to the action plan, by 2025, 500 "frontrunner" counties around the country will be created, with efficient logistics distribution centers, convenience stores for rural populations, and rural commerce centers, including large and medium-sized supermarkets and farm produce markets.

As Chinese policymakers are increasingly turning to domestic demand for ensuring long-term sustainable economic development amid a rapidly shifting and complex external environment, there has been a focus on the country's vast rural regions and their massive potential.

At the end of July, China's National Development and Reform Commission (NDRC), the country's top economic planner, unveiled 20 administrative measures to spur domestic spending, vowing to stabilize spending on big-ticket items, expand service consumption and boost consumption in rural areas.

Various Chinese localities have also moved swiftly to boost rural development, and consumption in particular. East China's Shandong Province recently announced 50 new-energy vehicle (NEV) and recharge-related promotion activities, joining a growing number of provincial regions to boost sales of NEVs. Apart from NEV sales, rural tourism has also become a growth spot.