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China aims to tap the potential of residential consumption by optimizing its structure, increasing the use of services and other measures, according to a new guideline released on Thursday.
The guideline was released jointly by the general offices of the Communist Party of China Central Committee and the State Council.
The document aims for a smoother cycle in which the upgrading of consumption leads to supply innovation. That, in turn, would improve new growth of consumption to achieve a higher level of balanced supply and demand.
Meanwhile, an environment with safer products and services should be created. Also, trust should be increased between consumers and producers under strengthened market regulations, the guideline said. Key standards for products and services should be fully established to improve their quality and better satisfy consumers, the document said.
Consumption is the ultimate end and motivation for production, and improvement of consumption is beneficial for optimizing the ratio between production and consumption, building an economic development model in line with China's long-term interests and promoting healthy economic development, the document said.
It also is beneficial to promote production and supply-side structural reform, move economic transformation forward and achieve high-quality development, it said.
However, producers are finding it difficult to meet the diverse demand of urban and rural residents. Regulatory mechanisms struggle to manage new, fast-growing businesses and models, the guideline said. The system to ensure quality and standards lags behind the need for increasing consumption, it said.
The guideline aims to increase supplies of high-quality products and services, better protect the legal rights of consumers and give them independence in choices. A more inviting market environment will be cultivated for all enterprises to provide products and services in a fair way.
Inclusive and cautious regulation should be conducted to boost new consumption. The document urges adherence to green development standards and development of healthy and rational consumption.