China's domestic consumption is set to grow, paving the way for a resilient economy that will shape the future of global markets, said Zhu Min, former deputy managing director of the International Monetary Fund (IMF).
As the Boao Forum for Asia (BFA) 2025 Annual Conference opened in the town of Boao in south China's Hainan Province on Tuesday, domestic consumption in the world's second-largest economy is one of the hot topics among its participants.
Zhu, a long-time participant at the forum, emphasized three key measures to boost consumption.
"Everyone pays a lot of attention to the Chinese economy, and how consumption boosts the economy? Firstly, we should ensure that the salary growth is aligned with the GDP growth. Secondly, social security should be ensured. Pension, health care, and other insurance should all be increased. Thirdly, large-scale consumption stimulation should continue. For instance, the scale of the trade-in initiative has doubled," said Zhu.
Zhu shared his recent personal experience of the trade-in program to describe its positive impacts on the economy.
"Recently, I bought a Lenovo computer, and I got a 1,500-yuan (about 206.80 U.S. dollars) subsidy, which is interesting and unexpected. I think the policy of consumption promotion is indeed trickling into every sector, like a gentle stream flowing into various sectors," said Zhu.
Looking ahead, Zhu predicted an unstoppable shift toward service-oriented and brand-driven consumption, fueled by innovations in artificial intelligence and local industries.
"I think the trade-in program is still a short-term policy. In the long run, we will head towards service consumption and consumption of new brands. China's artificial intelligence model will be applied to the industrial sector on a large scale. The first sector that will adopt it will be consumption. I think that the Chinese brands, the Chinese technologies, the Chinese market, and Chinese cultural consumer goods will thrive, and this trend cannot be stopped," said Zhu.
Zhu also said that China and Asia will transform from their traditional roles as manufacturing and export hubs to become consumption-driven economies. He also said China's consumption surge will be a significant contributor to global economic development.
"For a long time, China and Asia were labelled as manufacturers and exporters. Today, we are transforming into a consumption-oriented economy that relies on the domestic market. The world is watching China, and I think the most positive signal is that once China's consumption grows, China's economic transformation will succeed, which holds a significant meaning for the world," said Zhu.
With the theme "Asia in the changing World: Towards a shared Future", the four-day Boao Forum for Asia has attracted nearly 2,000 attendees from more than 60 countries and regions to participate in more than 50 events and many bilateral events, according to the press conference.
Expert predicts growth in China's consumer spending will drive economic transformation
