China's retail volume expected to reach
$604 billion
BEIJING - China's
retail volume will total 5,000 billion yuan (US$604.59
billion) this year, with year-on-year growth of 9
percent, according to a report issued by the Ministry of
Commerce on Tuesday.
The strong domestic
economic will forge a solid basis for the growth.Other
factors will also help to fuel the growth, such as
rising incomes and improved consumer rights standards,
the report said.
The gap between retail growth
in rural and urban areas will narrow from 3.5 percentage
points to 2.6 percentage points this year, according to
the report.
Last year, China's retail volume hit
4,580 billion yuan, up 12.1 percent year-on-year. In
2003, growth was affected by the severe acute
respiratory syndrome (SARS) epidemic, but since then
growth has rebounded quickly.
The report
highlighted China's four major retail growth regions,
including the Pearl River Delta region, the Yangtze
River Delta region, the Bohai Sea Ring and central
China.
Sales of food, garments, home appliances,
vehicles, telecommunication facilities, furniture and
raw materials such as coal, wood and oil were the
primary driving forces behind China's retail growth, the
report said.
Foreign retailers will take an
increasing share of China's consumer dollars this year.
Since 1992, foreign retailers have invested $3 billion
in China, and authorities have approved 264
foreign-funded ventures and 2,200 chain stores.
In addition to easing limits on foreign
ownership and the number of foreign-owned retail
branches this year - the anniversary of China's entry
into the World Trade Organization - China will also
allow foreign players to have a presence in medium-sized
cities, small cities and even rural areas.
(Asia
Pulse/XIC)
Mar 25, 2004
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