economy

Engel Coeffient Lowered along with Consumption Upgrading

Retail sales of consumer goods nationwide totaled RMB 38.1 trillion in 2018， an increase of nine percent year-on-year， said Gao Feng， spokesman for the Ministry of Commerce， recently. As a result， consumer spending contributed 76.2 percent to economic growth， 18.6 percentage points higher than 2017， and consumption remained the top engine driving Chinas economy.

This consumption is， however， increasingly targeting fashionable， high-quality， energy-saving， and intelligent products. Imports of consumer goods also maintained rapid growth. In 2018， Chinas imports of consumer goods increased by 10.9 percent over the previous year， according to customs statistics. In particular， as Chinas policy of reducing import tariffs on consumer goods took effect， some consumer goods related to “consumption upgrading，” such as imported cosmetics and aquatic products， are experiencing rapid growth.

It is worth noting that the proportion of food expenditure （Engel Coefficient） has been further reduced. In 2018， per capita consumption of food， tobacco， and alcohol rose by 4.8 percent， accounting for 28.4 percent of the total spending. In contrast， service and entertainment consumption grew faster with higher quality.

Looking into the consumer market in 2019， Li Mingtao， president of the research institute at China International Electronic E-commerce Center （CIEEC）， believes that the government is focusing on cultivating new consumption hotspots to further unleash consumption potential. In cities， tourism， catering， health， pensions， and other service-oriented consumer demand is surging.

RMB 7 Trillion Investment in Rural Revitalization

Yu Xinrong， Vice Minister of Agriculture and Rural Affairs， revealed at a recent summit， “To revitalize the rural areas， at least RMB 7 trillion investment is needed. Besides， a package of fiscal and financial policies as well as social efforts should be made.”

At present， large numbers of rural residents have no access to many financial services， and the financing demand of agricultural enterprises hasnt been fully met. In the future， with the promotion of the rural revitalization strategy， the demand for financial services in rural areas is bound to grow.

“There is much to do for the financial service sector to serve rural revitalization，” said Yin Jiuyong， vice president of the Agricultural Development Bank of China（ADBC）， citing the example of promoting urban-rural connectivity by infrastructure construction. The improvement of rural living environment， rural resource conservation and recycling， and the management of mountains， rivers， forests， lands， and lakes all need huge financial support. Besides， the marriage of a collective economy and industrial capital will also generate huge financial demands.

However， Shao Zhibao， vice president of Postal Savings Bank of China （PSBC）， pointed out that Chinas financial services for agriculture， rural areas， and farmers are plagued by high risk， high cost， difficult management， and slow effect. He advised to further optimize related assessment policies so as to effectively provide financial services.

Parcels Delivered in 2019 to Reach 60 Billion

The State Post Bureau（SPB） predicts that the volume of parcels delivered this year will reach 60 billion， a 20 percent year-onyear growth.

According to Ma Junsheng， head of SPB， in the past 40 years of reform and opening-up， the revenue of Chinas postal sector has increased from RMB 510 million in 1978 to RMB 787 billion in 2018， a 1，542-fold increase. The current postal revenue accounts for 0.9 percent of Chinas GDP and one sixth of the global postal revenue. Besides， China has topped the worlds market in the express delivery business for five consecutive years.

The conference made clear the requirements of the reform in the postal sector in 2019， which is to build a modern postal sector that serves the people and the goal of building a moderately prosperous society in all respects. Specifically， to improve service quality and efficiency， to reduce operation costs， and to guarantee the safety of the service are the three aspects to be noted for sustained and healthy development.

The total volume of postal business is expected to worth RMB 1.5 trillion in 2019， a 22 percent year-onyear increase， with revenue reaching RMB 930 billion， an 18 percent year-on-year increase.

Chinas Exhibition Industry Grew by RMB 100 Billion in 2018

The China Council for the Promotion of International Trade （CCPIT） recently released the Annual Report on Chinas Exhibition Industry 2018. Feng Yaoxiang， head of CCPITs investment department， said that as an important tool to promote trade and investment， Chinas exhibition services generated about RMB 100 billion in revenue in 2018.

The report shows that in 2018， 76 exhibition organizers across China participated in 718 projects in 33 countries along the Belt and Road， accounting for 42.9 percent of the total exhibition projects， up by 14.3 percent compared with 2017.

Chinas overseas self-organized exhibitions became increasingly mature and its presence on the international market was expanded. The growth of the total supply of exhibition venues slowed， and the overall occupancy rate of the market increased significantly.

Setting all the achievements aside， Chinas exhibition industry is in a transitional period， and problems are mainly reflected in the following aspects： unplanned construction of exhibition venues and low overall utilization； unbalanced regional distribution and unreasonable industrial structure； lack of professionals and low management efficiency； insufficient supporting facilities and poor service quality； and low internationalization degree and poor market status.