China to launch monthlong effort in May to boost consumption

China will launch a series of promotional activities, including a new consumer goods expo in Hainan Province, in May to boost spending as the Chinese retail sector recovers from COVID-19-induced consumer caution.

Expanding domestic consumption is a priority in China’s “dual circulation” economic strategy first highlighted by President Xi Jinping in May last year, which also called for a reduced dependence on foreign markets.

China’s retail sales surged 34.2 percent year-on-year in March, surpassing a 28 percent gain expected by analysts and stronger than the 33.8 percent jump in January-February. More significantly, retail revenues were 12.9 percent higher than March 2019 — before the pandemic.

As China enters a five-day Labor Day holiday, it will kick off the monthlong spending campaign on May 1 in Shanghai with activities including a car show, Gao Feng, a commerce ministry spokesman, said on Sunday.

Other major cities such as Beijing, Chongqing and Suzhou will also hold sales activities in May, he added.

E-commerce platforms will also offer deals on food, travel, and cultural and sporting products by “good quality brands” for half a month.

Events planned in other cities include a food fair in Yangzhou City in Jiangsu Province from Thursday and a fair from May 12 in Guangzhou in Guangdong Province that showcases well-known brands.

Haikou in the subtropical island of Hainan will hold the inaugural consumer goods expo from May 7-10.

Besides domestic products, the expo will showcase consumer brands from 69 countries and regions including Japan, Britain and the United States, with over 10,000 merchandisers and more than 200,000 visitors anticipated.