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China encourages social capital to upgrade consumer goods, increase supply

Xinhua | Updated: 2016-11-29 13:42

BEIJING - To improve consumer goods, increase supply and make the tertiary sector a new growth driver, China will allow more investment from the private and non-government sector, according to an official with the top economic planner Tuesday.

To boost huge potential consumption, China needs to improve the institutional environment to increase (non-government) capital to help upgrade consumer goods and increase supply, said Zhao Lidong, an official with the National Development and Reform Commission (NDRC), at a press conference.

Consumers want higher-quality products and services, while farmers, driven by faster income growth and compared to their urban counterparts, are consuming more goods, said Zhao.

To address this situation, the central government on Monday issued guidelines to boost consumption of services, as it believes more consumption in these areas will help improve people's lives, and contribute to economic restructuring and new growth.

Tourism, elderly care, and the cultural, sports and health industries were highlighted, as well as education and training.

"Some stadiums, for example, have been left idle. We will encourage their owners to open public sports facilities and help them find investment," said Zhao.

The official said the authorities will guide consumers toward energy-efficient products and develop standards for emerging technology and products such as smart homes and wearable devices.

He noted that the government will also roll out higher standards for domestic products to attract consumers that usually buy foreign products.

China's economic restructuring is beginning to bear fruit, with consumption playing a more conspicuous role in growth, accounting for 71 percent of GDP growth in the first nine months, 13.3 percentage points higher than a year earlier.

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