Chongqing Promotes Consumption for Stable Economic Growth

In 2021, Chongqing will coordinate the promotion of epidemic prevention and control and economic and social development. Led by the development of Chongqing as an international consumer hub, and with the goal of boosting consumption and stable economic growth, the city’s wholesale and retail sales are expected increase by 8.3% and 5.8% year-on-year. The city's total retail sales of consumer goods was 117.872 billion yuan, a year-on-year increase of 1.3%. The total amount was second only to Shanghai and Beijing among domestic cities, and the growth rate was 5.2 percentage points higher than that of China, ranking fourth in China.

 

To develop as a consumer hub, Chongqing has highlighted the promotion of urban commercial vitality and built a new urban business district development pattern, 23 municipal-level characteristic commercial streets, 17 Chinese food streets, and Jiefangbei pedestrian street was named by the Ministry of Commerce in the first batch of "National Demonstration Pedestrian Streest", rongchuang Cultural Tourism City, Jinsha Tian Street and Lijia Tian Street were completed and opened, becoming new consumer landmarks and models. Vigorously developing the night economy and building 33 city-level night market blocks, Chongqing has become China's top ten night economic influence city for two consecutive years.

 

Expand brand consumption and develop the "Four Heads" economy. Chongqing will build the first brand store development cluster centered on Jiefangbei, Chaotianmen, Guanyinqiao, Jiangbeizui and other areas as the core, and Jiefangbei departure tax rebate demonstration block, and introduce internationally renowned brands 300. There are more than 292 brand stores that first opened, more than 2,000 outlets for imported goods and 63 outlets for tax refunds. Implementation of the "Chongqing Goods" cultivation project, cultivated 19 Chinese time-honored brands and 241 Chongqing time-honored brands.

 

Coordinating the prevention and control of the epidemic, Chongqing quickly promoted the resumption of business and the market. Since the end of February last year, Chongqing promptly organized low- and medium-risk districts and counties to gradually open business premises. Passenger flow and turnover in major business districts have continued to recover, and the country has taken the lead in resuming business. As of mid-April 2020, the passenger flow of major business districts in Chongqing had recovered to 70% of the usual level, the resumption rate of business and market resumption in the "one quarter of an hour convenient consumer circle" has exceeded 90%, and the rate of resumption of business and market resumption of catering companies has reached 91%.

 

As of the end of 2020, the amount of residents' food, housing, transportation, and medical sales invoices increased by 23.4%, 33.8%, 12.5%, and 31.2% respectively, and clothing sales returned to the same period.

 

Chongqing supported 22.924 million yuan in discounts on loans for wholesale and retail, accommodation and catering, and residential service enterprises, and helped 113 municipal key guarantee companies obtain low-interest loans of 5.2 billion yuan. By the end of the year, the number of corporate, self-employed and micro-enterprises in the business service industry had increased by 7.6% and 7% respectively from the end of last year, and the consumer market had returned to the same period last year. The sales of household appliances enterprises above designated size in the city was 26.866 billion yuan, a year-on-year increase of 0.7%. The invoiced value of automobile sales increased by 13% year-on-year, and the retail sales of automobile enterprises above designated size was 102.009 billion yuan, a year-on-year increase of 6.8%.

 

To seize new opportunities for the development of online business formats and online services and management, Chongqing has promoted the online transformation and development of nearly 30,000 merchants, and the "Internet +" consumer ecosystem has been further improved. Initiated the “2111” project of e-commerce live streaming delivery, Chongqing carried out nearly 100,000 live streaming delivery activities, achieving retail sales exceeding 5 billion yuan.

 

In 2020, online retail sales of units above designated size in Chongqing will increase by 45%, 31.3% higher than the same period last year; the invoiced amount of Internet services, information services, and business services will increase by 37.9%, 39.1%, and 15.8% respectively; the city’s rural online retail and agricultural products sales increased by 11.2% and 39.3% respectively.

 

In addition, in Chongqing’s annual multi-stage coordination of government-enterprise linkages, urban linkages, business, travel and cultural linkages, Chengdu-Chongqing consumer interaction, and online and offline integration, more than 60,000 online and offline companies participated and organized more than 12,000 promotions. Nearly 500 million yuan in consumer coupons was issued. Starting from April 2020, Chongqing has achieved zero positive growth for the month for nine consecutive months, and achieved double-digit growth for three consecutive months in the fourth quarter. Excluding the impact of the epidemic, the total amount of social zero in the next three quarters and the second half of the year increased by 8.1% and 9.6% respectively, which were both higher than the 7.5% target at the beginning of the year. This provided strong support for the steady growth of Chongqing’s economy. The consumption promotion work has been fully affirmed by the Ministry of Commerce.

 

(Source: Chongqing Municipal Commerce Commission)