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The State Council Released the 12th Five-year Development Plan for the Domestic Trade

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Recently, the State Council officially released the 12th Five-year Development Plan for the Domestic Trade (hereinafter referred to as the Plan), which is prepared by the Ministry of Commerce together with other relevant departments. This is the first national special plan for the domestic trade in China since the reform and opening up. Launched under a strategic background of boosting domestic demands, especially the consumption demands, the Plan is of great importance in guiding the behavior of the market entity, realizing the healthy and rapid development of the domestic trade and playing the role of domestic trade in expanding consumption, improving people’s livelihood and guiding production.

The Plan comprehensively summarizes the outstanding achievements obtained in the development of the domestic trade during the 11th Five-year Plan period, profoundly analyzes the development environment of the domestic trade, explicitly points out the key opportunities and challenges encountered in the development of the domestic trade, clarifies the development strategies for the domestic trade in China during the 12th Five-year Plan period, and presents the policy guidance and priority in development.

The Plan proposes that during the 12th Five-year Plan period, the development of the domestic trade in China will focus on improving the circulation efficiency, facilitating the life of the people, guaranteeing commodity quality, guiding production development and promoting the consumption of the residents and accelerating the conversion of the development methods of the domestic trade to establish a healthy modern domestic trade system and bring into full play the role of domestic trade as the fundamental and guiding industry of national economy.

The Plan puts forward five principles to promote the development of the domestic trade: 1. insisting on exerting the fundamental functions of market; 2. Focusing on the strategic position of expanding consumption; 3. Enhancing the important functions of guiding production; 4 clarifying the essential tenet of improving people’s livelihood; and 5. giving great impetus to reform and innovation.

The Plan provides the goals of the domestic trade development during the 12th Five-year Plan period, i.e. twice more than the present indicators of the overall size, tendency of the urban and rural development to a consistency, remarkable improvement in the modern level of circulation, ability enhancement of the market in emergency regulation and control, and obvious improvement in the domestic market environment. The objects mainly include: the total volume of retail sales of social consumer goods reaches RMB 32 trillion by 2015 with an annual average growth rate of about 15%; the added value of wholesale, retail sale, accommodation, and catering industries exceeds RMB 7 trillion by 2015 with an annual average growth rate of about 11%; the number of employees in the domestic trade reaches 130 million including about 100 million employees in towns by 2015 with an annual average increase of more than 5 million person-time; the total sales volume of commodities in chain retail enterprises above designated sizes accounts for about 20% of the total retail sales volume of the social consumer goods by 2015; and the annual average growth rate for the trade volume in electronic commerce exceeds 30%.

The Plan has made overall arrangements for the development of the domestic trade during the 12th Five-year Plan period, and explicitly presented 8 major tasks. The first task is to plan the domestic trade as a whole for harmonious development, place key emphasis on forming a development pattern with regional features, exert the radiation and the driving effects of the main commercial functional areas, enhance the construction of rural modern market system and promote the integration of urban and rural commercial service network. The second task is to establish and perfect the modern commodity circulation system, and comprehensively enhance the construction of the circulation systems of agricultural products, means of production and industrial consumer goods. The third task is to promote the development of the service industry in the field of domestic trade, focus on promoting the development of service industries that concern the people's livelihood such as household services, popular catering, economical accommodation and other service industries. The fourth task is to improve the competitive force of the circulation enterprises, cultivate large enterprises, support small and medium-sized enterprises, and implement brand strategies. The fifth task is to greatly promote the circulation modernization, actively propel technology advancement, vigorously develop modern circulation methods and actively develop green and low carbon circulation. The sixth task is to guarantee the stable operation of domestic market, enhance public information service, improve the ability of market regulation and control and perfect the market emergency system. The seventh task is to create a normalized and orderly market environment, greatly rectify the market order, severely fight against infringement and counterfeits, actively promote the construction of credit system and enhance the management of commodity quality and safety industry. The eighth task is to deepen the reform and opening of the domestic trade, promote the management system reform, improve the level of opening up and promote the harmonious development of the foreign and domestic trade.

Centering on the main object and tasks of the domestic trade in China during the 12th Five-year Plan period, the Plan presents guarantee measures in six aspects, including improving regulation and standard system, enhancing the support of fiscal taxation and price policies, policies of Financing support to innovation, perfecting the planning and land policies, strengthening theoretical research and talent cultivation and establishing statistical evaluation system, etc.
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