China activates action plan to dynamize domestic consumption

China activates a plan to dynamize domestic consumption. The Beijing government presented today a twenty measures plan to speed the change in the economic model and to dynamize domestic consumption so this will mitigate the international trade slowdown.

Amongst the measures is to boost the rise of commercial spaces. This said, the initiative plans to transform department stores, factories and abandoned sports complex in multifunctional and shopping malls, as well as leisure centers and gyms, according to The South China Morning Post. 

Beijing suggests also the local authorities to boost commercial pedestrian streets, transportation services, credit and information systems and to create open air markets. The goal is to create a commercial atmosphere, “standardized, organized and colorful”.  

China incentives the construction of shopping malls in abandoned factories  

On the other hand, the country wants to boost the integration of the main commercial streets with culture and tourism. The government compromises to rethink commercial schedules and to increase the investment to create gathering areas for night consumption.

Other of the measures included in the initiative is to dynamize the acquisition of cars and to simplify the commercial paperwork to obtain licenses to open convenience stores.  

The goal of this plan is to promote domestic consumption so the country can hold its speed in growth, now boosted by exports. One of the positive sides is the increase of the per capita incomes, that in 2018 grew 6.5%, up to 22,228 yuan (4,334 dollars).

The country started this action plan after its industrial production dropped in July, registering the worst number since 2012. This indicator placed in the spotlight the fragility of the internal demand of the country as a result of the trade war with United States. In 2018, the Chinese economy grew 6.6%, its lowest number in three decades.