BEIJING (Reuters) -China has set out plans to expand domestic consumption and investment, the official Xinhua news agency said on Wednesday, as the economy struggles with COVID and weakening external demand.
Chinese policymakers face multiple challenges as an abrupt relaxation of harsh COVID-related curbs usher in a surge of infections, hitting businesses and consumers, while a weakening global economy hurts Chinese exports.
Boosting domestic demand will help China to pursue higher quality economic growth and cope with external risks and challenges, Xinhua said, citing the 2022-2035 plans issued by the cabinet.
“We must firmly implement the strategy of expanding domestic demand, expand residents’ consumption and effective investment, enhance the resilience of economic development, and promote sustainable and healthy economic development,” Xinhua said.
The move to boost domestic demand will support the country’s “dual circulation” strategy, according to Xinhua.
China has unveiled a “dual circulation” strategy for the next phase of economic development in which it will rely mainly on “domestic circulation” – the internal cycle of production, distribution and consumption, supported by innovation and upgrades in the economy.
(Reporting by Beijing Newsrooom; Editing by Andrew Heavens)
