China Introduces Interest Subsidies to Boost Consumption
The Chinese mainland is launching new interest subsidy policies on certain loans to ease financial burdens on individuals and businesses, aiming to stimulate consumption. Chinese Minister of Finance Lan Fo’an announced the initiative on Thursday.
At a press conference during the third session of the 14th National People’s Congress, Lan detailed that fiscal interest subsidies will be provided for personal consumer loans in key sectors. These include industries closely tied to daily life, such as catering, hospitality, healthcare, elderly care, childcare, and domestic services.
“We hope these policies will reduce financial pressure on consumers and lower financing costs for businesses,” Lan stated. “This initiative is expected to invigorate the market and enhance consumption.”
The move comes as part of broader efforts by the Chinese mainland to bolster its economy by encouraging spending and supporting industries that directly impact people’s everyday lives.
