BEIJING - This year China's
retail sales in 2004 are forecast to rise 13 % on-year
to reach 5.2 trillion yuan (US$628 billion) and are
likely to climb more than 10 % next year, the Ministry
of Commerce said.
After adjusting for inflation,
retail sales will be up 9.8%, 0.6 percentage points
higher than last year's growth rate, said Huang Hai,
assistant commerce minister.
China's total
retail sales this year have exceeded 5 trillion yuan
(US$604 billion) so far in December, Huang said
yesterday in a press release from the ministry.
Retail sales in October rose 14.2% year-on-year
to 498.3 billion yuan (US$60 billion), compared to a 14%
rise in September and 13 % for the first three quarters,
the National Bureau of Statistics said last month.
"Next year the total retail sales will keep
climbing fast, more than 10% higher than this year,"
Huang said.
Strong consumer spending, especially
in cars, housing and telecommunications products, have
supported the steady growth, Huang said.
For
foreign-invested retail business, Huang said sales grew
steadily in China, but did not give a specific number.
"Foreign retailers continue to expand their investment
in China and 21 new foreign-funded retail businesses
were approved so far this year," Huang said.
Foreign retailers are expected to win more
shares in China's retail market as China, entering the
fourth year of its World Trade Organization membership,
lifts most restrictions on retail business.
In
the Administrative Measure on Foreign Investment in
Commercial Areas issued by the Ministry of Commerce in
April, it was made clear these promises will be
implemented beginning December 11.
China will
abolish joint-venture requirements and end restrictions
on the location and number of foreign-funded stores.
The impending lifting of restrictions is viewed
as a very important opportunity by foreign retailers in
China.
Top foreign retailers have announced
their expansion plans before the critical opening-up
date, including Wal-Mart, Carrefour and Metro.
Huang said in the new retail mode - chain stores
took a greater proportion in the retail sales sector.
Sales of China's 30 largest chain operators
surged by 38% in the first half, far outpacing the 12.8%
growth rate of China's total retail sales.
Telecommunications retail sales surged by 42.8%
year-on-year in the January-October period, retail sales
of cars were up 26.1%.
Catering industry sales
witnessed a 22.3% growth in the first ten months,
hitting 596.7 billion yuan (US$72 billion).
Every month saw retail sales exceeding 400
billion yuan (US$48.3 billion) in the first ten months
and did not experience big fluctuations.
The
growth of retail sales was stable and within
expectations, Ren Xingzhou, an expert with the State
Council Development and Research Center, told China
Daily.
The high sales are also a good sign for
the healthy growth of the economy, as the central
government is trying to cool down investment yet lift
consumption, Ren said.
Compared to investment
and exports, which have maintained strong growth in
recent years, consumption - also a major engine for the
economy, is still comparatively moderate in terms of its
growth rate.
It is important for China to keep
consumption strong as the growth in investment is
expected to further slow down, Ren added.
Boosting consumption will continue to be a focus
of the government's macro-economic measures, said Huang,
saying increasing residents' income is effective.
Disposable income of urban and rural residents grew by
7% and 6% respectively in the first 10 months, Huang
said. And 9 million new jobs were created.
Rising prices also drive up retail sales,
according to Huang, specifying retail prices for fuel
went up 11% and food was up 10%.
(Asia
Pulse/XIC)
Dec 14, 2004
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