Government Work Report 2024: Unleashing Domestic Demand and Innovation
By CGTN’s Michael Wang
China’s latest Government Work Report signals a strong commitment to expanding domestic demand and consumption. The country is taking a multifaceted approach to unleashing domestic demand. These measures include stabilizing the labor market, creating more jobs, boosting incomes, and strengthening the social safety net.
Looking into the report’s nuances, it mentions boosting “new types of consumption”, or areas ripe for more investment. The government will also aim to further reduce restrictive measures that may hinder consumption growth while cultivating and expanding areas of consumption that have strong growth potential. Among those listed, we can expect policies to accelerate digital, green, and health-oriented consumption trends, which reflect China’s transformation towards more sustainable and tech-driven lifestyles. We can also look forward to measures that boost the consumption of smart home products, culture-inspired tourism, sporting activities, new energy vehicles, and expanding elderly and childcare services.
In tandem with demand-side initiatives, the government also intends to carry out supply-side commitments that will meet evolving domestic demand. For example, in the report, the first government work task listed is to advance the construction of a modern industrial system and to speed up the development of new quality productive forces. This implies China will be laser-focused on unleashing a wave of innovation to not only satisfy but also create new demand from industries, businesses, and consumers.
It’s important to note that while external observers these days often call for more demand-side stimulus, China’s focus on supply-side reforms, such as industrial transformation, inherently stimulates demand across the entire value chain. This can lead to productivity improvements, the creation of new products, higher-skilled jobs, and thus higher incomes, all of which support domestic demand.
The Government Work Report articulates China’s long-term vision to develop emerging industries to ensure future market demand. Concurrently, it also focuses on shorter-term tactical measures that can boost consumption in particular areas right now. Linking together the themes from the report on technological innovation, industrial transformation, the digital economy, removing barriers to consumption, and further opening up the economy, what is clear is that China is committed to laying the groundwork for a seamlessly connected and massive consumer ecosystem that is set to show new ways of how products and services are consumed.
