Core Insights - The overall trend of China's consumption market is stable, with a retail sales total of 3.88 trillion yuan in July, a year-on-year growth of 3.7%, which is 1 percentage point higher than the same period last year [2] - The phenomenon of high savings and low consumption reflects that the internal demand engine has not been fully activated, highlighting issues in the "can consume," "dare to consume," and "easy to consume" dimensions [3][4] - The need for systematic identification and resolution of key bottlenecks to effectively stimulate domestic demand through institutional reforms and the establishment of a fair and smooth long-term mechanism [10] Consumption Market Performance - In the first seven months, the total retail sales of consumer goods reached 28.42 trillion yuan, with a year-on-year growth of 4.8% [2] - The retail sales of services grew by 5.2%, while the combined retail of goods and services increased by approximately 5% [2] High Savings and Low Consumption - By mid-2025, household deposits increased by 10.77 trillion yuan to 162.02 trillion yuan, with a growth rate of 7.42%, while the retail sales growth rate was only 5% [3] - The contribution of final consumption expenditure to GDP growth remains below 60%, indicating a significant gap between savings and consumption [3] Key Mechanisms for Stimulating Consumption - The framework of "can consume, dare to consume, easy to consume" is essential for activating internal demand [3] - "Can consume" relates to material basis and actual purchasing power, "dare to consume" pertains to psychological safety and future expectations, and "easy to consume" involves the efficiency of converting willingness into actual behavior [3][4] Recommendations for Enhancing Purchasing Power - Deepening income distribution reform to increase labor remuneration and strengthen the role of taxes and social security in income redistribution [4] - Stabilizing social expectations and reducing precautionary savings through improved macro policy stability and social security systems [4] - Ensuring timely and adequate income for key groups, particularly migrant workers, through various measures [5] Enhancing Consumer Confidence - Increasing investment in public welfare to alleviate burdens in education, healthcare, and elderly care [6] - Strengthening consumer rights protection to address concerns over privacy breaches and misleading advertising [7] Improving Consumption Environment - Promoting institutional openness and facilitating cross-border consumption [8] - Enhancing service quality and creating friendly consumption scenarios through policy guidance and support for new business models [9] Long-term Mechanisms for Consumption Monitoring - Establishing a "consumption facilitation index" to evaluate the consumption environment and continuously optimize policies [9] - Implementing a systematic approach to identify and address common consumption bottlenecks [10]