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'Virtuous Circle' Between Consumption Upgrade and Supply-side Reform

Demand from consumers for higher-quality products and services will drive the economy to upgrade, says expert

By Zhang Qingchen Updated Oct.10

Currently supply and demand in the Chinese market has become a virtuous circle, said Tan Haojun, a deputy director of the State assets supervision and administration commission of Zhenjiang Municipal People’s government, Jiangsu Province, in a commentary for the Beijing Youth Daily. 
Tan said that demand from consumers for higher-quality products will in turn push the economy to upgrade, and in order to meet consumers' needs, the market has to adjust its structure to provide these products and services.  

To take the consumption structure during China's recent seven-day National Day holiday as an example, Tan said China's ongoing supply-side reform means that more Chinese people are purchasing made-in-China luxury products and household electric appliances, whereas previously they preferred imported products. This shows they are beginning to trust the quality of domestic products.