How can rural e-commerce develop to help the economy's new normal?

At this year's Two Sessions, several deputies to the National People's Congress and members of the Chinese People's Political Consultative Conference said that developing rural e-commerce is a "green" path to changing China's traditional economic spatial layout, and that active support should be given in terms of "software and hardware" to give play to its important significance in boosting domestic demand and promoting industrial transformation and upgrading.

Chen Zhenlian, a deputy to the National People's Congress and deputy director of the Hangzhou Municipal People's Congress, pointed out that since 2014, China's rural e-commerce has developed rapidly. On the one hand, e-commerce is increasingly becoming a new growth point for economic development; on the other hand, consumption is becoming the most important driver of GDP growth among the "three carriages." "Against this background, vigorously boosting rural domestic demand and promoting rural online consumption have become an intrinsic need for developing the rural economy and raising farmers' living standards."

Chen Zhenlian said bluntly that in the next ten years, the main engine of China's economic growth will shift from "external demand + WTO" to "domestic demand + internet." Compared with traditional rural shopping models, e-commerce has advantages such as competitive prices, product variety, and convenient logistics.

Chen Zhenlian suggested that logistics is currently a major obstacle restricting rural online consumption, and rural logistics must be vigorously developed. The national postal authorities should vigorously promote express delivery to the countryside, provide subsidies to logistics enterprises engaged in rural express delivery business, and at the same time promote local development of localized logistics enterprises specifically serving rural areas, exploring innovative rural logistics models.

In addition, rural broadband construction and the payment system are also important links. Chen Zhenlian suggested that, on the one hand, the "Broadband Village" project should be strengthened, the realization of 100% full broadband coverage in rural areas should be accelerated, and for pilot counties and villages of e-commerce platforms in rural areas, preferential access rates and higher access speeds should be considered; on the other hand, it is suggested that the rural payment system be developed in an innovative way, with electronic payment as the mainstream channel for rural online retail, promoting financial institutions to provide services in the countryside and providing villagers with convenient online banking services.