Talk of consumption downgrading in China inaccurate: MOFCOM

Source:Global Times Published: 2018/9/6 22:33:44

Talk of consumption downgrading inaccurate: MOFCOM spokesperson

The Chinese Ministry of Commerce (MOFCOM) on Thursday weighed in on the increasingly popular topic of domestic consumers allegedly cutting back on spending, saying that consumption is not downgrading and is actually still upgrading.

"Regarding the talk of a consumption downgrade, I think it is inaccurate," MOFCOM spokesperson Gao Feng told a press briefing, arguing that recently improving sales of some mass market products indeed reflected a new trend in the country's consumption upgrade.

As many recent indicators have pointed to downward pressure in the world's second-largest economy, some media reports have claimed that China's middle class - formerly big spenders at home and overseas as they chased high-end products - were economizing by buying cheaper products.

But Gao said that better sales of cheaper goods are not a consumption downgrade but instead a sign that consumers can buy more affordable products with better quality and reputation. He added that the fast development of e-commerce has expanded sales channels for shoppers in small towns and rural areas.

Furthermore, Gao said, Chinese consumers' increased participation in the sharing economy, involving such items as bicycles and cars, also shows an upgrade in consumption attitudes, where "consumers have become more rational and environmentally friendly." 

Gao said that the MOFCOM will take measures in areas such as expanding services consumption, upgrading sales channels and creating a better environment to ensure steady growth and persistent upgrading in the consumer market.

Newspaper headline: Talk of consumption downgrading inaccurate: MOFCOM spokesperson

Posted in: ECONOMY

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