Information consumption to fuel China's economic growth

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Information consumption to fuel China's economic growth

(Xinhua) 18:35, August 15, 2013

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A new state guideline to support the consumption of information products and services will stimulate the sector and help fuel economic growth, the China Securities Journal reported Thursday.

By the end of 2015, the consumption of information products and services is expected to grow at an annual pace of at least 20 percent to reach 3.2 trillion yuan (518 billion U.S. dollars), according to a guideline released by the State Council, China's cabinet, on Wednesday.

The guideline says boosting information consumption can invigorate domestic demand and act as a new growth point for the economy, as well as upgrade the service industry, promote economic restructuring and improve people's lives.

It highlights innovation and the power of market forces as ways to promote rapid and healthy information consumption.

The value of industries that are supported by information consumption is expected to increase by 1.2 trillion yuan by the end of 2015, and Internet-based consumption should grow by at least 30 percent annually to 2.4 trillion yuan, according to the guideline.

China's e-commerce sector raked in 4.98 trillion yuan in revenue in the first half of 2013, up 45.3 percent year on year, based on Ministry of Industry and Information Technology data.

Consumption of information products and services jumped 20.7 percent year on year to 2.07 trillion yuan, while the output of smartphones surged 120 percent to 214 million units.

Pingan Securities said in China Securities Journal that investment and consumption in the information industry will likely become a new breakthrough for further economic expansion in the country.

The company believed that sufficient opportunities will be created for investment as the guideline outlines the major tasks for promoting information consumption.