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Translated by
Nicola Mira
Published
Jan 18, 2019
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China adopts measures to give consumers more time to shop

Translated by
Nicola Mira
Published
Jan 18, 2019

The Chinese economy's growth is slowing down at a rate faster than expected, and authorities are currently testing various measures to boost local consumption expenditure, from longer week-ends to extended store opening hours.


In early 2018, the city of Beijing campaigned for retailers to extend opening hours - Shutterstock


The commercial authority of the municipality of Beijing is about to introduce incentives designed to boost all-day consumption. In a press conference held last December, Yan Ligang, director of the commercial office, said he intended to facilitate 24-hour opening times for restaurants and supermarkets.

The goal is to learn from other major cities like Shanghai and Shenzhen, where night-time opening hours are driving increased consumption, especially for personal goods. In early 2018, the municipality of Beijing campaigned for retailers to stay open for longer, according to English-language Chinese newspaper Global Times.

Even more interesting is the approach taken by the province of Hebei, which extends virtually 360º around China’s capital. The northern part of the province is proposing to give workers Friday afternoon off to allow them to go shopping. The proposed measure, according to Bloomberg, is about “accelerating the removal of the most important systemic obstacles which directly influence local consumption, in order to promote the emergence of consumption zones.” A stimulus to consumption expenditure that still needs the authorities’ approval, but whose nature is a clear indication of the country's economic climate.

Once dubbed the world's factory, China is indeed gradually redirecting its efforts towards promoting internal consumption. In the textile sector, this meant that a plethora of manufacturers, formerly dependent on exports to the West, eventually launched their own brands, targeted to a Chinese clientèle. Yet, local trade has experienced quite a few bumps, notably due to a worsening employment outlook. Since 2015, the year when China recorded the weakest growth rate in 25 years, domestic consumption has been saving the day. Boosting it is therefore a major challenge for China, which is also locked in a commercial struggle with the US.

China remained the top apparel supplier to the EU, with exports worth €10.5 billion (-9%), in the first half of 2018. However, due to more of its output being gradually channelled towards the domestic market, and to rising local wages, China’s apparel industry is about to be caught up by that of Bangladesh, which exported €8 billion (+2%) worth of goods to the EU in the same period.

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