In order to foster a new development pattern, China will give priority to domestic circulation and work to build a strong domestic market and turn the country into a trader of quality, according to a CGTN report on March 5. Chinese Premier Li Keqiang said, "We will leverage the flow of the domestic economy to make China a major magnet for global production factors and resources, thereby promoting positive interplay between domestic circulation and international circulation."

Chongqing Municipality in Southwestern China vows to cultivate new consumption models in 2021 from five aspects in a bid to upgrade its overall consumption level. It involves boosting urban and rural consumption, building consumption platforms, upgrading traditional consumption models, nurturing new consumption drivers, and improving business and trade logistics.

The coronavirus pandemic has taken a toll on China's consumption markets in 2020. Chongqing is no exception. In response, Chongqing authorities have taken a slew of measures to stimulate consumption, which soon produced tangible results. Total retail sales of consumer goods in 2020 hit 1.18 trillion yuan, up 1.3% from 2019 and 5.2 percentage points higher than the national average, based on nine consecutive months of positive growth.

"Currently, the virus is still spreading across the world. Containing the virus, restoring consumption, and expanding domestic demand are priorities high on the city's agenda, " said Zhang Zhikui, secretary of the Leading Party Members’ Group and director of the Chongqing Municipal Commission of Commerce. “Premier Li's government work report has also placed greater emphasis on stabilizing and expanding domestic consumption. Now we're better aware of the importance of consumption and the weight of our responsibilities.”

Chongqing has outlined a blueprint. While building itself into a city of international shopping, food, exhibition & convention, and culture, Chongqing will press ahead to upgrade the central business district and construct Cuntan International New City.

Boosting urban and rural consumption

Zhang said, "To boost urban and rural consumption, Chongqing will uphold high-quality, smart, green, personalized, and internationalized concepts and create new consumption scenarios."

The efforts will go hand in hand with continually improving the consumption environment in which urban areas are offering more while rural areas are consuming more. A growing consumption capacity with high-quality products offered will also facilitate China's strategic diversion from poverty alleviation to rural revitalization.

Building consumption platforms

Drawing from the successful experience in building the national demonstration project Jiefangbei Pedestrian Street, Chongqing will renovate more pedestrian streets and develop business areas, including Guanyinqiao, Yangjiaping, Nanping, and Sanxia Square.

Meanwhile, equal attention will be given to the night economy. Chongqing pledges to ramp up the input to build a core night economy district and make Chongqing a well-known brand of the sleepless city. Themed events, celebrations, and local hotpot festivals will be held throughout the year.

Upgrading traditional consumption models

Chongqing will offer greater support to the food and beverage industry by nurturing brands and boost consumption. For the automotive industry, the government will release measures to expand automobile consumption, preferential policies to boost automobile sales in rural areas and trade in old automobiles for new ones, abolish registration restrictions over automobiles from lower-emission standards provinces, and improve the recycling system of end-of-life vehicles.

Nurturing new consumption drivers

Chongqing will accelerate the integrated development of online and offline consumption, support offline retail businesses' transition and cross-border cooperation, explore the possibilities of smart shopping malls, supermarkets, restaurants, and other new retail forms. More policies will be formulated to support online ordering, contactless delivery, take-out, group meal, and other new consumption models. In addition, a three-year action plan will be carried out to set up thousands of convenience stores in the neighborhoods.

Improving logistics for business and trade

Chongqing will facilitate the commodities market transition, build mega-markets with 10 billion yuan annual output value and market clusters with 100 billion yuan annual output value as it keeps improving agricultural products circulation networks and other infrastructures. In the meantime, Chongqing will foster more logistics businesses by supporting major local players'’ development, attracting competitive international players to China, and encouraging capable players to get listed on China's stock exchanges.