The Chinese Communist Party‘s “two sessions” have set a GDP growth target of more than 6 percent for 2021, which has already been questioned by the outside world, while its consumption growth target for 2021, which ranges from 15 percent to 7 percent, has been considered by the media to be too high, leaving the Chinese people dumbfounded.
Taiwan‘s “Free Times” reported on March 9 that the continuous impact of the Communist Party’s virus Epidemic has reduced the income of the Chinese people and significantly reduced their consumption power, and the people are afraid to spend money indiscriminately under the uncertain economic outlook, resulting in insufficient consumption power to drive economic growth.
According to the report, the two sessions of the Communist Party of China (CPC), which are now in session, have begun to work on consumption, setting consumption growth targets for 2021 for several provinces.
According to incomplete media statistics, the provinces and cities that were set consumption growth targets for 2021, Hainan up to 15%, Guangxi reached 12%, Shanxi, Yunnan, Sichuan are set to more than 10%, Henan, Anhui more than 9%, Ningxia 8%, Shaanxi 7.5%, Chongqing 7%, Gansu 7%, and so on.
According to the official media of the Chinese Communist Party, China’s consumption power is recovering too slowly, dragging down economic growth. According to official data, total retail sales of consumer goods fell by 3.9% year-on-year in 2020, the first decline since 1978.
To save consumption power, the CCP’s 14th Five-Year Plan and the draft outline of the 2035 Vision have both proposed domestic market requirements for consumption and investment, even as 12 departments, including the Ministry of Commerce, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Finance, and Ministry of Ecology and Environment, issued the Circular on Measures to Boost Bulk Consumption and Promote the Release of rural Consumption Potential. The Circular on Certain Measures to Boost Consumption” was issued by the Ministry of Commerce, the Ministry of Commerce, the Ministry of Reform, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Finance, the Ministry of Ecology and the Ministry of the Environment, and other 12 ministries to boost consumption.
During the two sessions of the National People’s Congress, Chinese Communist Party delegates have been talking about consumption and coming up with ways to get people to spend more money, but the problem is that the Chinese people have no money to spend as their income continues to decline.
According to survey data from the Family Finance Survey Center of Southwest University of Finance and Economics in the first half of 2020, the real growth rate of disposable income per capita in China slows to 2.1% in 2020. In absolute terms, disposable income per capita will be 32,189 yuan in 2020, and if compared with the average nominal growth rate of the previous two years, residents’ income as a whole increased by about 1.7 trillion yuan less last year.
The survey data shows that low-income households in China with annual incomes of less than 30,000 yuan and 30,000-50,000 yuan are expected to spend the most, with 26.4 percent of companies reporting reduced hiring and 15.5 percent reducing salaries, according to the family members surveyed.
Another statistic indicated that the growth rate of disposable income of mainland residents has been in a continuous decline for many years, with the growth rate of disposable income of residents at 10.6% in 2012, falling to 7.4% in 2015 and 5.8% in 2019. 2020 total retail sales of consumer goods fell by 3.9% and per capita consumer spending of residents actually fell by 4%, a weak annual consumption situation that is an accelerated decline in the original trend in response to external shocks.