CPPCC member calls for stronger policy support to unlock consumption potential in China

China can further unleash domestic consumption potential and cultivate new growth drivers by deepening fiscal reforms, strengthening social security and fostering new consumption scenarios driven by emerging technologies, said Qi Xiangdong, chairman of Qi-Anxin Technology Group.

Qi, who is also a member of the 14th National Committee of the Chinese People's Political Consultative Conference, said there remains significant room for policy innovation to boost consumption, particularly by addressing both demand-side confidence and supply-side innovation.

On the demand side, policymakers should focus on ensuring that households have stronger financial capacity and more confidence to spend, Qi told China Perspective during an exclusive interview. This could involve intensifying fiscal and tax reforms, including optimizing the individual income tax threshold and adjusting the tax rate structure to ease the burden on households.

Qi suggested exploring regular consumption subsidies for middle- and low-income groups as a way to stimulate demand. At the same time, improving public and social security systems covering pensions, healthcare and education would help reduce household concerns about future expenses.

While boosting demand is essential, Qi stressed that supply-side innovation is equally important in stimulating consumption and sustaining long-term growth.

On the supply side, policymakers should focus on creating new consumption scenarios, improving services and sparking consumer enthusiasm. One key approach would be to accelerate the establishment of national-level application pilot programs and demonstration zones for frontier technologies such as artificial intelligence.

More efforts should also be made to cultivate immersive and experiential consumption scenarios while driving the upgrading of service consumption, Qi said.

Qi also pointed to several sectors closely linked to people's pursuit of a better quality of life as potential new engines of growth.

Service-oriented consumption areas such as sports, cultural tourism and healthcare are gaining momentum, he said. Meanwhile, emerging categories including smart home appliances, embodied intelligence and new energy vehicles are also expanding rapidly as technology advances.

"These sectors have enormous potential," Qi said. "What we need to do is guiding them with policy support so that this potential can be transformed into real economic momentum."

Lyu Jinkai contributed to this story.

ouyangshijia@chinadaily.com.cn