Expert: Boosting consumption requires comprehensive measures

Boosting consumption in China requires comprehensive policy efforts rather than reliance on any single measure, said Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research.

He told China Perspective during an exclusive interview that consumer behavior is influenced by multiple factors and varies across different income groups.

"For low-income groups, income growth remains a key constraint, particularly amid ongoing industrial restructuring, which may limit wage growth in certain sectors," Sun noted. "For some groups, consumption willingness and confidence are the primary concerns, with heightened global uncertainties and domestic structural adjustments as affecting factors."

"Overall, current consumption willingness is relatively weak, and consumption confidence is not strong enough," he said.

Citing official data, he said that China's per capita disposable income grew 5 percent year-on-year last year, while per capita consumption expenditure rose 4.4 percent, indicating a clear gap.

To further boost consumption, Sun stressed that maintaining stable economic growth is essential, particularly by supporting industries and sectors closely linked to employment and income, including small and medium-sized enterprises and micro businesses.

He also highlighted the importance of property income, noting that its growth remains relatively slow and has significant room for improvement.

Meanwhile, institutional reforms are equally important, he said, calling for improvements to the social security system and the removal of restrictive measures in the consumption sector to enhance consumer willingness.

On the supply side, Sun emphasized the need to expand the offering of high-quality goods and services, especially as demand for new and services-oriented consumption continues to rise.

Only through coordinated efforts across income growth, institutional reform and supply expansion can consumption potential be fully unleashed, he said.

Liu Yang and Lyu Jinkai contributed to this story

ouyangshijia@chinadaily.com.cn