China’s consumer spending has been on the rise in recent years. During the 10^th Five-Year-Plan period，the annual increase of total social consumables retailing was 11.8 per cent year-on-year. In 2006，it increased by 13 per cent，3 percentage higher than the growth of GDP. However，a much higher investment growth has driven down 2006 final consumption ratio to 51 per cent and its contribution to the growth of national economy is therefore relatively weak.

In 2006，the central government stressed that emphasis should be put on promoting consumption in the national economic work. The Ministry of Commerce will strive hard to raise consumption expectation in 2007 and to expand consumption areas as well. The ministry will cultivate consumption items，improve consumption environment，upgrade consumption structure and strengthen the consumption-led economic growth.

Ⅰ. Judging situation accurately

Consumer surveys should be carried out to find out consumption features，structures，behaviors，habits and facilities. Problems that affect consumer spending should be analysed so that developmental trends are better understood and properly judged. The ministry will work out methods targeting different regions，industries and income groups to boost consumer demand.

Ⅱ. Emphasis is put on rural consumption

Rural circulation networks should be improved continuously，and retail channels suitable for rural market should be set up. The ministry will promote multi-function services to help sales，logistics，processing，purchases，lease and technical support. Farmers have difficulties selling farm produce and they need help. Retail channels for consumables should open to farmers too.

In key towns and villages，we should try to explore ways to set up centers that provide shopping，entertainment，training and services to meet farmers’ various needs. Countryside life will therefore be improved and become more colorful.

There must be various services providing information such as rural commerce forecast. Forecast on farm produce supply and demand will help guide farmers make more money，and expand rural consumption.

Companies should develop low-cost，simple-packaged fine products that meet farmers demand. China’s silkworm centers should be moved to China’s central and western regions and be upgraded to become competitive in the world.

Ⅲ. Expanding service consumption

Community service groups should be set up to build a harmonious business environment. Customer-friendly services should be expanded and assisting facilities be constructed.

The ministry encourages community services such as chain eateries，maintenance shops，laundries，hairdressers and convenience stores. City vegetable markets and supermarket fresh food supply should be standardized.

Branding should be the strategy. Hotel and restaurant service should carry out reform and innovations in order to build brands including company and service brands.

In service industry，professional standards should be formulated for hotels，laundries and beauty salons and their workers should be better trained. The service market access system should be improved.

Ⅳ. Cultivating new items and services for consumers

Furniture，electric appliances，textiles and home deco are now chief consumables and should be further promoted. Car consumption including new and second-hand ones could be expanded. We should actively promote e-information，communication products，entertainment，education and training，holiday travel and sports consumption.

We should work to meet consumer’s growing demand for spiritual consumption，outdoor and sport consumption. Special brands from overseas will be introduced into China to balance internal and external demands.

The ministry will also positively promote vogue consumption and online purchase. E-business will be standardized so that online transactions will be safe.

Ⅴ. Promoting circular consumption

The ministry will work hard to promote second-hand goods trade. While rich families pursue upgraded consumables，their used goods can be traded to meet the needs of poor farmers and low-income city residents.

The ministry will promote circular consumption and full utilization of resources such as solar energy，methane and ethanol fuel，and waste materials retrieval. Disposable and plastic products should be controlled. Excessive packaging should be stopped in order to form a resource-saving consumption mode.

We should educate our people to consume scientifically，safely and go green. The whole society should be industrious and thrifty so that good habits to save energy，water，wood and grain will be formed and become part of our people’s conscious actions.

Ⅵ. Perfecting consumption policies

We should study the policy role of finance，monetary，employment，planning，environment and industry，and work out a set of comprehensive measures to achieve synergy to expand consumption.

The ministry will help solve policy and system hur