BEIJING: While expanding domestic demand has been promoted as an essential way to boost China’s economic growth, experts noted that a recently released guideline stressed the importance of simultaneously deepening supply-side reform, China Daily reported.

“To build a robust, dynamic domestic market, the Chinese economy seeks a more balanced equilibrium where demand impacts supply and supply generates demand,” said Gao Ruidong, Chief Macroeconomist at Everbright Securities.

As China’s economy rebounds from COVID-19, pent-up consumption potential is being unleashed. Optimising epidemic controls has reduced uncertainty, benefiting domestic demand recovery, said Zhang Junwei, a Development Research Centre of the State Council researcher.

“Expanding domestic demand differs based on China’s economic stage. Currently, it most directly addresses inadequate demand,” Zhang added. “The key is promoting government and market enthusiasm, with gloomy global growth and sluggish recovery.”

Since the guideline’s December
release, businesses have seen China rebound and set production goals accordingly. Incentivising new energy is key for boosting supply-side upgrades and strategic emerging industries.

He Zhiqi, Senior Vice President of BYD – a multinational manufacturing company for passenger battery electric vehicles and plug-in hybrid electric vehicles- said this gives confidence that the demand for electric vehicles will keep growing.

“We’ve seen the market’s red-hot since late last year. In December, our New Energy Vehicle (NEV) sales were about 235,200 units, up over 150 percent year-on-year,” he said. “The government prioritises domestic demand recovery and expansion, with NEVs playing an integral role. We’re confident NEV demand will steadily grow this year, and we’ll improve technologies further.”

Source: Emirates News Agency