China plans to expand domestic demand to boost economy – state media | WKZO | Everything Kalamazoo

BEIJING (Reuters) – China has laid out plans to expand domestic consumption and investment, official Xinhua News Agency said on Wednesday, as the economy struggles with COVID and weaker external demand.

Chinese policymakers face multiple challenges as an abrupt easing of strict COVID-related restrictions ushers in a wave of infections hitting businesses and consumers, while a slowing global economy hurts Chinese exports.

Boosting domestic demand will help China pursue higher-quality economic growth and deal with external risks and challenges, Xinhua said, citing plans for 2022-2035 issued by the cabinet.

“We must consistently implement the strategy of expanding domestic demand, expand residents’ consumption and effective investment, strengthen economic development resilience, and promote sustainable and healthy economic development,” Xinhua said.

The move to boost domestic demand will support the country’s dual circulation strategy, according to Xinhua.

China has unveiled a “dual-cycle” strategy for the next phase of economic development, in which it will primarily rely on the “domestic cycle” — the internal cycle of production, distribution and consumption driven by innovation and modernization in the economy is supported.

(Reporting by Beijing Newsroom; Editing by Andrew Heavens)