Not just manufacturing: Li Qiang vows China will be major consumption power

Premier Li Qiang has pledged that China will become a “consumption powerhouse” capable of fuelling domestic and global growth, even as he acknowledged the country was grappling with a slump in cross-border investment and persistent trade tensions.

Speaking at the World Economic Forum’s annual meeting in Tianjin on Wednesday, Li reiterated Beijing’s commitment to boosting demand in the world’s second-largest economy and defending globalisation.

“This will make China a mega-sized consumption powerhouse, on top of being a manufacturing powerhouse,” Li said at the gathering, also known as Summer Davos.

“We are on track to become a high-income country supported by robust consumption upgrades,” he added.

Beijing’s pivot towards stimulating household spending has gained urgency amid a volatile trade war with the United States and rising global uncertainty.

Consumer activity picked up in May, helping offset pressure on manufacturing and exports in a challenging tariff environment. Retail sales rose by 6.4 per cent year on year, compared to 5.1 per cent in April.