China eyes 50 trillion yuan in retail sales by 2025, but external uncertainties put onus on domestic consumers to spend
- With the future shrouded in uncertainties, new five-year document says domestic trade must play an increasingly important role in shoring up national economy
- Document tasks 22 state departments with helping to establish a strong domestic market to counter turbulent external environment
China is expecting to see about 50 trillion yuan (US$7.85 trillion) in retail sales by 2025 as Beijing intends for consumption to play the role of a “ballast stone” to counter external headwinds, according to a five-year document released by multiple authorities on Friday.
A key gauge for the nation’s consumption, retail sales totalled 39.2 trillion yuan in 2020 but failed to meet the target of 48 trillion yuan that Beijing set when it released its previous five-year plan in 2016.
The new document, which outlines tasks to boost domestic trade from 2021-25 for 22 state departments, including the National Development and Reform Commission, the Ministry of Commerce and the People’s Bank of China, also said there was an urgent need to establish a strong domestic market to counter the turbulent external situation.
“The international political and economic situation is complex and changeable, the uncertainty and instability has obviously increased, and the impact of the Covid-19 epidemic situation is extensive and profound,” it said, detailing external risks.
“The world economy is in a downturn; economic globalisation has encountered headwinds; traditional and non-traditional security threats are intertwined and rising; the world has entered a period of turbulence and reform; and the security and stability of industrial chains and supply chains are facing major challenges, so the role as a ‘ballast stone’ and ‘stabiliser’ of domestic demand has become more prominent,” the document added.
