Core Viewpoint - Consumption is identified as the primary engine for China's economic growth, with a strong emphasis on boosting consumption over the next five years as a key macroeconomic policy focus [3]. Group 1: Economic Development Goals - The "15th Five-Year Plan" aims for significant achievements in high-quality development, maintaining economic growth within a reasonable range, and improving total factor productivity [3]. - The plan highlights the need for a noticeable increase in the resident consumption rate, which is expected to enhance the role of domestic demand in driving economic growth [3][5]. Group 2: Current Consumption Rate Analysis - China's resident consumption rate is notably low at 39.1% in 2023, compared to the global average of 56.6% and 52% for middle-income economies [5]. - The low consumption rate indicates substantial potential for economic growth, with at least a 20 percentage point increase possible when compared to developed and similarly developing countries [5]. Group 3: Policy Recommendations for Consumption Boost - The plan proposes specific actions to stimulate consumption, including enhancing employment, increasing income, and improving public service spending to boost residents' consumption capacity [6]. - It emphasizes expanding the supply of quality consumer goods and services, focusing on service consumption, brand leadership, and technological application to upgrade product consumption [6]. Group 4: Structural Adjustments and Consumer Environment - The plan includes measures to improve the consumption environment by reducing unreasonable restrictions on consumption, particularly in the automotive and housing sectors [7][8]. - It aims to establish a more supportive framework for new consumption models and enhance consumer rights protection to encourage spending [6][7].

Core Viewpoint - The article emphasizes the need to boost consumer spending in China to replace investment as the main driver of economic growth, highlighting that the current low consumer rate presents both challenges and opportunities for future economic expansion [1][2]. Group 1: Economic Context - Consumer spending is identified as the primary engine of China's economic growth, with a significant focus on enhancing consumption in the upcoming five years as a key macroeconomic policy initiative [1]. - The "15th Five-Year Plan" aims for high-quality development, with specific goals including a noticeable increase in the resident consumption rate and a sustained enhancement of domestic demand's role in economic growth [1][2]. Group 2: Current Consumer Rate Analysis - China's resident consumption rate stands at 39.1%, significantly lower than the global average of 56.6% and the 52% average for middle-income economies, indicating substantial room for growth [2]. - The low consumption rate is seen as a barrier to transitioning from investment-driven growth to consumption-driven growth, contributing to the recent slowdown in economic growth [2]. Group 3: Policy Recommendations - The "15th Five-Year Plan" proposes specific actions to stimulate consumption, including increasing public service spending, enhancing consumer capacity, and expanding the supply of quality consumer goods and services [3]. - The plan emphasizes the importance of creating new consumption scenarios and fostering international consumption centers to boost domestic demand [3]. Group 4: Structural Adjustments - The article discusses the need to eliminate unreasonable restrictions on consumption, particularly in the automotive and housing sectors, to align with the goal of boosting consumer spending [4][5]. - It is anticipated that cities will implement policies to optimize purchase restrictions in housing, supporting both rigid and improvement housing demands while stabilizing related consumption [5].

Core Viewpoint - The low consumer spending rate in China is a long-standing issue that needs to be addressed to promote sustainable high-quality economic development during the 14th Five-Year Plan period [1][2]. Group 1: Current Economic Policies and Trends - The Chinese government has implemented various policies to boost consumer demand, with a particular focus on enhancing consumption as a priority task this year [1]. - From January to July this year, the retail sales of consumer goods increased by 4.8% year-on-year, with retail sales excluding automobiles growing by 5.3% and service retail sales rising by 5.2% [1]. Group 2: Structural Issues in Consumer Spending - China's consumer spending rate is significantly lower compared to international standards, and it has shown a trend of rising over the past 15 years after an initial decline [2]. - The low consumer spending rate is attributed to insufficient social security, unstable expectations, and weak consumer confidence, compounded by pressures from housing, healthcare, education, and retirement [2]. Group 3: Policy Recommendations for Enhancing Consumer Demand - To effectively release consumer demand potential during the 14th Five-Year Plan, policies should focus on three areas: 1. Implementing counter-cyclical consumption stimulus policies to support service consumption, particularly in education, healthcare, and retirement [2][3]. 2. Increasing social security and public service levels for low-income groups to enhance safety and consumer confidence [2]. 3. Strengthening supply-side policies by reducing entry barriers and optimizing regulatory policies to expand the supply of quality services [3].

Group 1: Consumption Rate Analysis - China's consumption rate is only 37.2%, which is 16.6 percentage points lower than the average of 53.8% across 38 countries[1] - The low consumption rate is primarily due to a low consumption propensity of 62%, compared to the average of 92.3% for the 38 countries[2] - The disposable income of Chinese residents is not low, accounting for 60% of GDP, slightly above the 38-country average of 58.2%[3] Group 2: Income Distribution Factors - China's initial distribution income as a percentage of GDP is 61.4%, lower than the 38-country average of 63.2%, mainly due to low net property income[4] - In 2022, China's net property income was only 3.2% of GDP, compared to 6.2% for the 38-country average[5] - The reliance on interest income (76.2%) over dividend income (10.2%) indicates a lack of diversified property income sources[6] Group 3: Taxation and Redistribution - China's net transfer income as a percentage of GDP was -1.4%, better than the -5.0% average of the 38 countries, indicating a lighter tax burden[7] - The tax burden on residents is low, with personal income and property taxes accounting for only 1.2% of GDP, compared to 8.1% for the 38-country average[8] - Increasing tax burdens to match the 38-country average while enhancing transfer payments could potentially raise consumption by 1.6 trillion yuan and increase the consumption rate by 1.3 percentage points[9]