Fueling China's Economy: Consumption upgrades play key role in boosting growth

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03:01

The latest developments in the ongoing US-China trade war have once again cast doubt on global economic growth. But despite the uncertainties, China still aims to import more high-quality goods to boost consumption as demand from Chinese consumers remain strong. CGTN's Wu Lei has more.

Imported goods have become a big part of Chinese people's daily lives. With a slew of online platforms and faster logistical services, Chinese consumers have more options than ever.

SHI JIAN CHINESE CONSUMER "As far as milk powder and other products for babies are concerned, I prefer some imported brands with good quality. I often double check them in stores before buying online."

As the saying goes, diamonds are a girl's best friend. Such is the case for 24-year-old Qian Xialing. She's looking for her first diamond after two years of working for a Shanghai public relations firm.

QIAN XIALING CHINESE CONSUMER "A good-quality and beautifully-designed item is more like an affirmation, some encouragement as well as a reward for myself. It will also boost my quality of life and my confidence."

According to surveys, China's younger generation is more willing to buy imported and luxury goods than older consumers are. China's generation Z, those born between the mid 1990s and mid 2000s, has become a driving force behind the consumer spending.

JAMES MACDONALD, SENIOR DIRECTOR SAVILLS PROPERTY SERVICES (SHANGHAI) CO. "They are also influencing the types of brands which serve that generation Z, which will continue to grow in the coming years. So it is an indication about where consumption is going to go."

With more disposable income, Chinese families are more optimistic about their futures and more confident about spending.

WU LEI SHANGHAI "I can still remember the crowded and bustling China International Import Expo which was held here last November. To meet the growing quality of life demand, the latest announcement says this year's exhibition area will be larger, with more brand name products making their debut."

SUN CHENGHAI, DEPUTY DIRECTOR CHINA INTERNATIONAL IMPORT EXPO BUREAU "We have expanded the pavilion area from 270 thousand square meters to 300 thousand square meters this year. In particular, more high-end consumer goods, products and services for China's aging society are among the highlights."

According to the National Bureau of Statistics, total retail sales for consumer goods in China reached nearly 9.8 trillion yuan in the first quarter of 2019. That's just over 1.4 trillion US dollars, and a year-on-year increase of 8.3%. Compared to trade and investment, consumption is expected to further fuel Chinese economic growth. WL, CGTN, SH.