Take measures to restore and expand consumption at the same time

　　The Central Economic Work Conference put forward that "efforts should be made to expand domestic demand" and "priority should be given to restoring and expanding consumption". Domestic demand is the basic driving force of China’s economic development, and expanding domestic demand is the strategic basis for building a new development pattern. Domestic demand includes consumption demand and investment demand. At present, the development pattern of domestic demand dominated by consumption in China has basically taken shape, and the key to expanding domestic demand is to expand consumer demand.

　　China’s economy has strong resilience, great potential and sufficient vitality, and there are many favorable factors for continuously expanding consumption. Compared with developed countries in Europe and America, the proportion of final consumption in GDP (consumption rate) in China still has a lot of room for improvement. China’s residents’ consumption is upgrading to "from good to good", and the consumption of upgraded goods and services is growing rapidly. Large cities and metropolitan areas play an increasingly leading role in consumption. As the level and quality of urbanization continue to improve, the functions of consumption gathering, leading and innovation in large cities and metropolitan areas will become more prominent. Technological innovation and application are becoming more and more active, which promotes the vigorous development of new formats, new models and new scenarios, and provides new means and strong impetus for expanding consumption. Changes in consumer groups create new space for consumption, and factors such as family miniaturization, single population growth and aging population promote the formation of new consumption concepts and new economic forms.

　　In the near future, expanding consumption should focus on improving expectations and boosting confidence. The key point is to effectively implement the "two unwavering", further relax the market access of private enterprises, unify regulatory rules and standards, fully support the development of difficult industries and small and micro enterprises, and create a better development environment for the private economy. We will do a good job in stabilizing growth, employment and prices, effectively prevent and resolve major risks, and enhance the confidence of the whole society in the overall recovery of economic operation and the continuous increase in employment and income.

　　In the medium and long term, expanding consumption should optimize the income distribution structure, improve the quality of employment, increase the income of urban and rural residents through multiple channels, and let residents have stable income to consume. It is necessary to improve the social security system, strengthen basic public services, and firmly grasp the basic bottom line of people’s livelihood, so that residents can dare to spend without worries. It is necessary to improve the consumption environment, innovate consumption scenarios, optimize the competition order, and let residents feel strong and willing to spend because of the excellent consumption environment. The key to effectively restore and expand consumption is to establish and improve a series of new mechanisms to expand domestic demand.

　　First, investment and consumption promote each other. Promote the effective combination and mutual stimulation of boosting consumption and expanding investment, and achieve a higher level of dynamic balance between supply and demand. Pay more attention to the domestic market and people’s livelihood, improve the investment structure, improve investment efficiency, and further play the role of investment in promoting consumption.

　　The second is the two-way force of supply and demand. On the supply side, we will promote the formation of a multi-level and diversified supply system, expand the opening of the service industry to the outside world in an orderly manner, and continuously improve the quality and structure of goods and services supply. On the demand side, conform to the trend of consumption upgrading, better meet the ever-changing and iterative consumption demand, and effectively release the consumption potential of goods and services.

　　Third, innovation leads the way. Innovate the concept and method of supervision, improve the efficiency of supervision, promote the sustained and healthy development of platform economy and promote the recovery of consumption. Give full play to the important role of new technologies, new models and new formats in expanding consumption, strengthen the leading function of consumption innovation in central cities and metropolitan areas, and constantly form new growth points of consumption.

　　The fourth is green and low-carbon transformation. Balance the relationship between expanding consumption and the carrying capacity of resources and environment, advocate a simple and moderate, green and low-carbon, civilized and healthy lifestyle, and promote the transformation of consumption to a healthier and moderate, green and low-carbon and more sustainable direction.

　　In terms of expanding consumption policies, we must adhere to the trend and classify policies to further enhance pertinence.

　　First, improve the fiscal and financial policies to promote consumption. Give full play to the role of fiscal and financial policies in improving residents’ consumption enthusiasm and ability, and further improve policies such as special additional deduction of personal income tax, issuance of consumer vouchers, and reasonable increase of consumer credit to promote consumption.

　　Second, speed up the upgrading and expansion of housing and transportation consumption. Effectively prevent and resolve risks in the real estate sector, continuously improve the level of public services and social security, and support rigid and improved housing demand. We will introduce preferential policies for vehicle purchase tax with the focus on encouraging renewal and replacement, and achieve accurate policy relay.

　　Third, promote the rapid recovery of service consumption. Seize the important holidays and other nodes to promote consumption, encourage local festivals with various themes and characteristics, and dig deep into the consumption potential of night economy, single economy, silver-haired economy and experience economy.

　　Fourth, optimize new consumption scenarios and consumption supporting systems. Promote the transformation and upgrading of business districts and pedestrian streets in central cities, and increase the supply of integrated experiential consumption scenarios. Improve rural logistics distribution, transportation and communication, service marketing, charging and refueling and other supporting systems to stimulate the vitality of the rural consumer market.

　　(This article Source: The author of Economic Daily is the deputy director and researcher of the Institute of Market Economy of the State Council Development Research Center)