The improving and huge Chinese consumer market is poised to bring fresh momentum to the global economic growth, according to a commentary of The Real Point published on Friday.
An edited English-language version of the commentary is as follows:
Consumer sentiment in China has improved, revealed a survey by Deutsche Bank AG recently.
In its latest report, the bank highlighted that compared to last year, more Chinese consumers feel their financial situation has improved. Notably, 52 percent of the respondents expressed willingness to increase discretionary spending, marking the highest level in a year. Official data supports this trend - China's total retail sales of consumer goods reached 8.37 trillion yuan (about 1.15 trillion U.S. dollars) in the first two months of this year, beating expectations.
Professor Wang Xiaosong from the School of Economics at Renmin University of China said that one reason for this surge of confidence is China's steady economic recovery since last year, with rising household incomes providing a solid foundation for consumption growth. Another key factor is the series of supportive policies introduced by the Chinese government.
From a series of measures in last September's stimulus package to this year's top legislature session prioritizing consumption and the recent rollout of a plan on special initiatives to boost consumption, all these policy supports will significantly boost consumption in the world's second-largest economy.
As more Chinese consumers loosen their purse strings, foreign companies deeply invested in China are also reaping the benefits.
Tetsuro Honma, global vice president of Panasonic Group, said that China's subsidy policies have boosted their sales markedly, with refrigerator sales soaring over 60 percent year on year and washing machines up 80 percent.
A senior executive from L'Oreal China highlighted China's commitment to optimizing the consumer environment, providing solid support for the high-quality development of the beauty industry.
Hock Tan, president and CEO of Broadcom, emphasized that China's policy stability and predictability helps businesses to better forecast market trends.
Policy ensures stability while innovation fuels growth. As China accelerates the development of new quality productive forces, its consumer market is also exhibiting dynamic growth.
Ralf Brandstätter, chairman and CEO of Volkswagen Group China, said that the company is leveraging local research and development capabilities to drive its electrification strategy.
He revealed that their first batch of new products and cutting-edge technologies will be unveiled at the upcoming Auto Shanghai show.
China, with over 1.4 billion people, remains one of the world's largest and most valuable consumer markets.
McKinsey predicts that by 2030, Chinese urban residents will drive 91 percent of global consumption growth, contributing 7 trillion U.S. dollars to global urban consumption, 30 percent of the total increase.
Consumption is a key driver of economic growth. As China shifts towards a consumer-driven economic growth model, the global economy is bound to gain fresh momentum.
Recognizing China's consumer potential, foreign investors are doubling down on their investment in China this year.
So far, major foreign investment projects totaling 33 billion U.S. dollars have been announced.
Tesla, Lexus, and other global automakers are expanding their footprint in China.
Eli Lilly and Company plans to increase investment and expand local production capacity.
McDonald's aims to open 1,000 new restaurants in China this year and Subway is set to add 300 to 500 new stores annually.
China's vast consumer base continues to be a magnet for global investors, reinforcing its position as the world's most attractive consumption hub.
China's huge, improving consumer market to boost world economy: commentary
