MNI China Press Digest April 18: Exports, Demand, Consumption

Highlights from Chinese press reports on Tuesday:

• Chinese contract exporters such as wholesale textile manufacturers must transform their business model to develop their own brands and e-commerce businesses, according to Wang Jian, dean of the International Business Research Center at the University of International Business and Economics. Wang noted a high number of contract exporters at this year's Canton Fair will encounter problems in the future, as other countries have cheaper labour costs coupled with strong capabilities. China will see stronger export performance in H2 this year, as orders build up towards Christmas.
• Authorities should implement policy support to boost domestic consumption and ensure China can transition to a dual-circulation model of development, according to an editorial from Yicai. The economy should not overly depend on foreign trade, which remains uncertain despite strong export growth in March. The government needs to secure long-term domestic spending by promoting stable employment and increasing income levels, thereby ensuring a sustainable transition to the dual circulation model of development. The news agency noted increased residents deposits in Q1showed the reliability of domestic circulation needs improving.
• The local government in Changsha, Hunan province capital, will prioritise night time economic support to expand domestic consumption this year, according to the 21st Century Herald. The largest night market in Changsha has seen attendance and revenues up 20% and 25% in 2022 and 2023, a trend local leaders believe will continue into Q2. Night time spending accounts for 60% of the value of the total day time consumption in Changsha, making it a significant contributor to demand in the city. The government plans to implement a model that integrates shopping with cultural and creative industries, entertainment and fitness. (Source: 21st Century Herald)