What do Experts Say? “Ten Highlights of China’s Commercial Sector, 2011-2012”
|
Executive Summary
For many enterprises, the year 2011 was not an easy year; the weakening global economy has not only cast doubt over the growth prospects for the world economy, but also imposed huge pressure on the Chinese economy. Moreover, inflationary pressure, the appreciation of Renminbi against the US dollars and rising costs of doing business in China have created significant impact on China’s commercial sector.
Nevertheless, the government’s initiatives to boost domestic consumption as well as to promote a healthier business environment are bringing huge opportunities to commercial businesses. To stay ahead of the market, enterprises are advised to keep their fingers on the pulse of China’s changing commercial landscape. Here is a brief summary of the Ten Highlights of Commercial Sector, 2011-2012:
1. Real retail sales of consumer goods will grow at a slower pace; stabilizing the economy by expanding domestic consumption becomes more challenging
The year 2012 is full of uncertainty. The Chinese economic growth is expected to further decline in 2012. Facing the European debt crisis, China's export growth is slowing; industrial production and fixed asset investment growth are likely to decelerate. The deterioration of the export market as well as falling investment not only affect economic growth, but may also adversely affect employment and household income. All these factors may constrain domestic consumption. If there is no extension of consumption stimulus measures, it is expected that the total retail sales of consumer goods in real terms will fall to around 10% year-on-year in 2012.
2. Development Plan for Domestic Trade will set the framework and policy direction for China’s domestic trade sector in the next five years
The long-awaited Development Plan for China’s domestic trade during the 12th Five-year Plan period (2011-15) ( 國內貿易發展規劃 (2011-2015年)) is expected to be promulgated in early 2012. The Plan is China’s first national plan on domestic trade and sets to become the blueprint for China’s domestic trade sector. The Plan will outline the policy framework for China’s domestic trade for the next five years, covering wholesale, retail, accommodation, catering and other service industries. Major themes of the Plan include expanding domestic demand, improving people’s livelihood and increasing household income, developing and modernizing the distribution sector, promoting the development of new retail formats and speeding up the development of the service sector.
( Please click here to read full article )
|
|
