China’s retail sales are expected to grow by more than 6 percent in 2022 under the country’s new “dual circulation” development strategy, after staging a strong recovery last year thanks to the economic rebound from the coronavirus pandemic, Fung Business Intelligence said on Friday.
According to a report co-released by the research group and China General Chamber of Commerce, bulk consumption, urban consumption, rural consumption, and especially green consumption – which is supported by the central government’s policies and measures – have shown an upward trend.
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The research group, which monitors, analyzes and reports on global developments in sourcing, supply chains, distribution and retail with a particular focus in China, is a think tank affiliated with the Fung Group.
Enterprises should understand green philosophies and translate them into concrete actions.
Helen Chin, Vice President, Fung Business Intelligence
To follow the guidelines in the 14th Five-Year Plan, and to achieve the goal of carbon neutrality for Hong Kong by 2050 and for the Chinese mainland by 2060, the consumer market will gradually turn to green consumption, according to the report.
“The ‘green’ label may become an industry standard within the commercial sector. Enterprises should understand green philosophies and translate them into concrete actions,” said Helen Chin, vice president of Fung Business Intelligence.
She added that rural consumption has maintained rapid growth for many years. “Encouraging rural consumption is an important measure to expand domestic demand and promote rural revitalization.” The central government’s goal of “common prosperity” will also benefit long-term growth in rural consumption, the report said.
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Chang Ka Mun, senior advisor of Fung Business Intelligence, said that the overall trend in consumption upgrading will continue to aid the recovery of the consumer market, though regional resurgences of COVID-19 have restrained consumption.
Meanwhile, J.P. Morgan, in a report released on January 10, forecast that 5 percent is a reasonable expectation for China’s growth target in 2022.
“Consumption growth is affected by labor market conditions and household income, public health measures, as well as household savings adjustments. Possible resumption of restrictions on intra-provincial mobility in the first quarter of 2022 may cause a near-term drag,” according to the report authored, by Haibin Zhu, chief China economist at J.P. Morgan.
Contact the writer at aoyulu@chinadailyhk.com