Chinese policymakers see e-commerce as a pillar of growth

Gerry Shih

BEIJING (Reuters) – China should support its e-commerce industry with preferential policies given the role it plays in boosting domestic consumption and economic growth, China’s State Council said in a document released on Sunday.

The State Council’s clear support for the e-commerce industry and the development of related technologies such as online payment processing and e-commerce logistics comes as the country’s leaders seek to boost domestic consumption in the face of slowing growth rates.

Chinese state media pointed to $9.3 billion worth of goods purchased on Nov. 11, the annual online shopping day known as Singles’ Day, as a sign that Chinese consumers may increasingly become the country’s economic engine, even as key sectors such as real estate splash.

Alibaba Group Holding Ltd, the newly launched $280 billion online retailer that has become a champion of China’s technology industry on the international stage, is likely to be one of the main beneficiaries of domestic policies in what is already the world’s second-largest e-commerce business. trade market.

JD.com, China’s second-largest e-commerce company, also listed on Nasdaq this year after a high-profile IPO in May.

The State Council, China’s cabinet, has not issued any specific policy recommendations on e-commerce, but its periodic opinions are seen as guiding the direction of China’s industrial policy.

Chinese policymakers have emphasized promoting IT companies as a way to move the country beyond export-based manufacturing and up the economic value chain.

The State Council also pushed for the “transformation and modernization” of the agricultural sector, greater use of energy-saving products and recycling, and the development of the services sector.

At the Group of 20 summit in Australia, President Xi Jinping told world leaders this week that China will be able to maintain “stable, balanced and balanced growth” amid growing concerns about a potentially sharp slowdown.

Official Chinese data showed gross domestic product grew 7.3 percent in the third quarter, the slowest pace since the global financial crisis.

(Reporting by Gerry Shih; Editing by Clelia Oziel)