China's 2023 Two Sessions: China expands domestic demand, promotes new urbanization
Updated 16:52, 05-Mar-2023

China expanded domestic demand, promoted coordinated regional development and advanced people-centered new urbanization over the past five years, according to a government work report submitted to the national legislature for deliberation on Sunday.

China promoted personal income growth of urban and rural residents through various avenues, and the earnings of middle- and low-income groups have been rising, the report said. The country leveraged the fundamental role of consumption in stimulating economic growth and fostered a sound domestic demand system. 

The country also worked to further improve its economic structure, such as by promoting digital economy. According to the report, the value-added output of new industries and new business forms and models took up over 17 percent of the GDP.

Guided by the principle that cities should be built by the people and for the people, China advanced people-centered new urbanization, which includes granting permanent urban residency to eligible people who move from rural to urban areas, said the report, adding that the country leverages the role of city clusters and metropolitan areas to promote coordinated development of large, medium and small cities.

In terms of promoting coordinated regional development, China made progress in the large-scale development of the western region, achieved new breakthroughs in the full revitalization of the northeastern region, accelerated the rise of the central region, and encouraged the eastern region to modernize more quickly. Overall, the central and western regions outpaced the eastern region in terms of economic growth rate, according to the report.

China will expand domestic demand and give priority to the recovery and expansion of consumption this year. The incomes of urban and rural residents will be boosted through multiple channels, and the growth in personal income will be generally in step with national economic growth, it said. 

The government aims to drive investment with policy incentives and encourage the involvement of more private capital in major state projects, the report said. It proposed that 3.8 trillion yuan will be allocated for special-purpose bonds for local governments this year.

(Cover: A view of the Central Business District in Beijing, capital of China. /CFP)

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