Beijing aims to boost consumption, jobs via retail sector plan

[Photo: Xinhua]

Chinese authorities announced yesterday that the country will fully leverage the role of the retail industry in expanding domestic demand, as the world’s second-largest economy seeks to give a boost to consumption and jobs over the next five years by accelerating this sector’s innovative development.

This is according to a special-purpose guideline charting the course of development for the industry during the period, which was unveiled by the Ministry of Commerce, together with eight other government departments, including the National Development and Reform Commission and the Ministry of Finance.

Under the guideline, China aims to establish a modern retail system and cultivate a number of globally competitive retail enterprises by 2030. The competitive modern retail system will feature supplies of high-quality goods and improved services, as well as enhanced intelligence and convenience in better catering to people’s needs.

By promoting good practices and successful experiences in retail, the country will make offline retail function as venues for not only shopping, but also people’s leisure, immersive experiences, entertainment and social interaction. Meanwhile, online retail will become a shopping destination providing abundant varieties of high-quality products with standardized operations, according to the guideline.

It has, notably, outlined concrete key tasks ranging from system planning for the industry’s layout to encouraging new supplies and creating new consumer demand, aimed at boosting the innovative transformation and high-quality development of the retail sector.

In optimizing the structure of the retail sector, efforts will be made to promote the expansion and upgrade of community-based “15-minute life circles,” referring to people accessing their daily needs within 15 minutes by providing them with quick access to supermarkets, convenience stores and wet markets. Meanwhile, efforts will be made to invigorate consumption in lower-tier markets and promote the upgrades of marketplaces and shops in counties.

To improve product quality, the guideline encourages retail operators to strengthen procurement quality control and traceability by rigorously selecting suppliers, nurturing privately-owned labels and adopting the practice of product quality declaration. Efforts will be enhanced to crack down on the production and sale of counterfeit goods, both online and offline.

The guideline also encourages retail operators to provide value-added services such as product customization, home delivery and shopping assistance for special population groups, such as the elderly.

Eyeing new consumer demand, the guideline says the country will promote the renovation and upgrading of old commercial districts and enhance the quality of pedestrian-only streets and commercial blocks. Support will be provided for the renewal of equipment and facilities in eligible offline commercial consumption venues like commercial complexes, shopping centers, department stores and large supermarkets.

It also pledges support for the connection of commercial facilities with transportation centers and surrounding scenic spots through elevated walkways and underground passages.

With the growing popularity of “China Travel” and “China Shopping” fueled by sustained efforts to expand visa-free policies and facilitate inbound travel, the guideline also noted that support will be provided to increase the number of departure tax refund shops and set up special zones and exhibition centers for quality export products.

The country will support large retail operators in their efforts to venture into global markets via self-built channels, mergers and acquisitions, and collaboration with partners, according to the guideline.

In exploring the new drivers of retail growth, the guideline said efforts will be made to enhance digitalization and intelligence in the sector by encouraging retail operators to achieve full-chain digitalization in purchasing, inventory, sales, logistics and distribution, and establish more business scenarios such as intelligent shopping guidance, drone delivery and unmanned vending.

China yesterday also announced that the country aims to create a considerable scale of urban jobs and keep the urban surveyed unemployment rate within 5.5% over the next five years.

Recognizing the retail industry’s role in the labor market, the guideline encourages retail operators to stabilize their workforce, roll out more labor contract-based job posts, improve employee welfare and provide job opportunities for disadvantaged groups.

The guideline further requires e-shopping operators to strictly fulfill statutory obligations including qualification review for merchants registered on their respective platforms.

In line with the country’s endeavors to build a unified national market, the guideline will prohibit the setting up of access barriers such as mandatory independent legal person registration or minimum investment scales for cross-regional operations of chain retail enterprises.

In terms of financing, the country will support eligible retail operators in issuing asset-backed securities and commercial real estate investment trusts. Financial institutions will be encouraged to introduce industry-specific credit policies suitable for the retail industry. Meanwhile, loan interest subsidy policies for service-sector operators will also be extended to eligible retail operators, the guideline notes.

This sectoral development guideline over the next five years aligns with China’s 15th Five-Year Plan, which aims to significantly increase the household consumption rate and strengthen the role of domestic demand as a primary driver of economic growth during the 2026-2030 period. Xinhua