China will encourage social capital to upgrade consumer goods and increase supply in an effort to build the tertiary sector into a new growth driver, said an official with the nation's top economic planner Tuesday.
"With its huge consumption potential, China needs to improve institutional mechanisms and the market environment to increase social capital in upgrading consumer goods and increasing supply," said Zhao Lidong, an official with the National Development and Reform Commission (NDRC) at a press conference.
Consumers need more high-quality products and services, while farmers, driven by faster income growth, are consuming more goods compared to their urban counterparts, said Zhao.
In a bid to tackle a lack of high-quality goods and a shortage of supply, the Chinese government issued guidelines to boost consumption of services on Monday.
Tourism, elderly care, and the cultural, sports and health industries were highlighted, as well as education and training.
China's economic restructuring has shown budding progress with consumption playing a more conspicuous role in growth, accounting for 71 percent of GDP growth in the first nine months, 13.3 percentage points higher than a year earlier.