China to Expand Consumption in Second Half Year

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Last updated at: (Beijing Time) Thursday, July 17, 2003

China to Expand Consumption in Second Half Year

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The Chinese government will take measures to increase consumption in the second half of this year, so as to revive the tourism and service industries, which had suffered during the severe acute respiratory syndrome (SARS) outbreak, Cao Yushu, deputy secretary-general of the State Development and Reform Commission, said here Thursday.

Cao told a press conference on China's industrial performance that China's once expanding consumption demand slowed down with the SARS outbreak in the first half of the year.

China reported an increase of 9.2 percent in consumption duringthe first three months, said Cao, but the figure dropped to 4.5 percent in April and May.

Cao said that after the SARS epidemic was brought under control,the Chinese government launched an incentive package to boost consumption. And for the consumers, their pent-up desires for purchasing in the period were also released.

The current burst of shopping and eating out among Chinese people is only a temporary spree, which will soon taper off, Cao added.

Cao said the government has decided to take effective measures to increase supply and maintain consumption.

He expected the buying to resume completely in the second half of the year, and reach a peak level during the coming National Dayholiday.

According to Cao, the light and textile industries will see more opportunities during the second half of the year in developing more products to meet people's new demands after SARS, such as sanitation, entertainment, tourism, health care and green food products.

To help boost the fast growing real estate and automobile industry, the government will also issue some regulations, so as to accelerate the upgrade of China's consumption structure, according to Cao.

Cao added that new consumption habits developed during the SARSoutbreak, like online shopping and education, bringing greater chances for the further development of the domestic electronic industry.

In addition, the Chinese government will also take further steps to prepare for the coming peak season of buying, Cao said.

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