MNI POLICY: China Consumer Spending to Recover in Q2: MOFCOM

By Wanxia Lin

     BEIJING (MNI) - China's consumer spending may recover in the second quarter

and gather steam in the second half of the year, fuelled by pent-up demand from

the Q1 slowdown, Wang Bin, deputy director at the Ministry of Commerce's Market

Operation Bureau said Thursday.

     Consumer spending is expected to bottom out in March after a tough

February, Wang said.

     Here are other key points from MOFCOM's Wang and Li Xingqian, director of

the Foreign Trade Bureau.

     - Services, including catering, accommodation, tourism, culture and

entertainment have been badly affected, while retail sales of durable goods such

as automobiles and home appliances, as well as jewellery, clothing and shoes,

also fell. Sales of food and daily necessities were less affected, Wang said.

     - If the epidemic lasts longer than expected, agriculture, food, and

sectors with deep supply chains and labour-intensive industries may receive a

bigger hit, Li said.

     - Imported frozen meat piled up at ports due to transport and labour

disruptions have been released to the market. Most ports have free capacity, Li

said, except for the ports in Tianjin and Shanghai.

     - Export-heavy companies in Guangdong and Jiangsu provinces are fast

resuming operations, and about 70% companies in Zhejiang and Shandong provinces

have resumed operations, said Li.

     - Local governments are being encouraged to introduce measures to promote

electric vehicle purchases, replacement of older vehicles and relax car purchase

limits, said Wang.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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