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China to focus on domestic consumption in 2021 as US trade war fades from priorities

  • Country’s new dual circulation strategy will see ministry concentrating on efforts to boost consumption at home
  • Appointment of new minister Wang Wentao confirmed on Saturday

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China’s new commerce minister Wang Wentao. Photo: Handout
Frank Tang

China’s commerce ministry will focus on domestic consumption next year as the trade war with the United States falls down the list of priorities.

A statement about its nationwide work meeting on Saturday, the first meeting chaired by the new minister Wang Wentao, stressed the importance of the domestic market, a key element of the new dual circulation strategy.
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The ministry said: “We will step up domestic demand, try to drive up consumption potential, build a modern circulation system, clear obstacles to domestic circulation and eventually form a strong domestic market.”

The appointment of Wang, the former governor of Heilongjiang who had previously spent two decades in Shanghai, the country’s biggest economic hub, was approved by the Standing Committee of the National People’s Congress earlier on Saturday. He replaces Zhong Shan, who is retiring at the age of 65.

This year has proved to be a good one for China’s export machine despite the shock caused by the Covid-19 pandemic at the start of the year.

China’s exports quickly rebounded as the country brought the coronavirus under control while other major economies suffered.

In November, exports jumped by 21.1 per cent compared with the same month last year, the fastest pace in more than two years, to US$268 billion, while the January-November total rose by 2.5 per cent to US$2.32 trillion.

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It helped to lift China’s gross domestic product growth to 4.9 per cent in the third quarter.

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