China's Strategic Consumer-Centric Economic Shift

China's cabinet aims to boost consumption by aligning supply with demand, promoting consumer finance, and focusing on high-quality, distinctive goods, as the economy faces structural imbalances and slows. This consumer-centric strategy intends to drive industrial and consumption upgrades over the next five years, combating deflation and supporting growth.

In a recent meeting chaired by Premier Li Qiang, China's cabinet expressed commitment to enhancing consumption as a core engine of the economy. The strategy centers on closely aligning supply with consumer demand, a move intended to bolster industrial upgrades.

State broadcaster CCTV aired the cabinet's pledge, emphasizing improvements to consumer finance and creating favorable environments for spending. This marks a noticeable shift in China's economic focus for the next five years as it faces challenges from global trade tensions and investment constraints.

The country's October economic figures highlight persistent structural imbalances, with industrial output rising 4.9% year-on-year, while retail sales climbed only 2.9%. The cabinet has recommended expanding the availability of distinctive, high-quality consumer goods and revising safety and environmental standards to further stimulate demand.

(With inputs from agencies.)