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Premier urges upgrading industry by boosting consumption

Updated: Nov 12,2015 11:05 AM

Premier Li Keqiang urged upgrading the consumption industry by boosting demand at a State Council executive meeting on Nov 11.

As the equipment industry has greatly improved in recent years, the consumption industry should also respond to new changes in consumer demand and actively participate in the competition, said the Premier.

With a population of 1.3 billion, which includes a middle-income group of 300 million, China has a tremendous consumption power incomparable to any other country, said Premier Li, adding that people’s consumption demand has changed since China became a middle-income country.

He urged authorities to issue policies to encourage domestic enterprises to “actively attune to the needs of consumers”.

“With more money in pockets, people want to live a better life. We should not restrict them from going abroad to buy things, or even close the door of our country,” said Premier Li. “Instead, we must provide consumers with more freedom to choose.”

“However, meanwhile, we must promote the domestic consumption industry upgrading by taking advantage of the upgrading of people’s consumption demand,” he stressed.

Due to the development of science and technology, industry across the world is undergoing a profound revolution, noted the Premier.

He recalled a mass innovation and entrepreneurship campaign he attended in Beijing in October, where he was impressed by a new product manufactured through 3D printing technology.

“We must extend our industrial chain, seize new markets and create new supplies to continuously attune to and meet new demands of consumers,” he said.

The Premier also called for reforms in the household registration system and fiscal and taxation systems to boost consumption upgrading.

Stepping up urbanization will not only drive the consumption of housing and household electrical appliances but also truly improve farmers’ living standards, he said.

Speaking of reform of fiscal and taxation systems, Premier Li urged opening more duty-free stores at ports of entry and improving the tax refund policy for foreign tourists to further expand opening up.

“We must form a pressure mechanism by expanding opening up to add new engines for revitalizing national industries and stimulating new vitality,” said the Premier.