Chinese premier stresses promoting consumption to stabilize economic fundamentals

Aerial photo taken on Sept. 17, 2020 shows the Houhai area in Nanshan District of Shenzhen, south China's Guangdong Province. (Xinhua/Chen Yehua)

BEIJING, April 13 (Xinhua) -- Chinese Premier Li Keqiang on Wednesday said that the country will roll out measures to boost consumption, as part of efforts to keep the fundamentals of the economy stable and improve people's livelihoods.

"Consumption is a steady driver of economic growth and bears on ensuring and improving people's livelihoods," Li said while chairing a State Council executive meeting.

The meeting decided on measures to counter the impact of COVID-19 and boost the recovery and growth of consumption.

The abundant provision and stable prices of essential consumer goods should be ensured, said Li.

A host of large-scale warehouses with comprehensive functions will be scientifically planned and built on the outskirts of cities to mobilize living necessities in case of emergency, he said.

The meeting also noted that new types of consumption should be promoted and the integration of online and offline consumption should be accelerated.

Consumption in key areas should be expanded, said Li, adding that consumption in the service sectors, such as medical, health, elderly and child care, should be propelled, and spending on automobiles and home appliances should be encouraged.

The consumer spending potential of counties and townships will be further tapped, according to the meeting.

Li stressed increasing export tax rebates to promote foreign trade development, adding that the business environment for foreign trade will be improved on multiple fronts.

Enterprises with better credit records will enjoy greater facilitation in customs clearance and tax refunds, he said, noting that malpractice such as false exports and fraudulent tax rebates will be punished to the full extent of law.

The premier also underscored that financial support to the real economy should be stepped up to drive down market entities' financing costs.

Major banks are encouraged to lower their provision coverage ratio in an orderly manner, he said.

The meeting also decided to use monetary policy tools like reserve requirement ratio cuts at an appropriate time to increase the credit input capacity of banks, strengthening financial support to virus-hit sectors, micro, small and medium-sized enterprises and self-employed individuals.