China has announced ambitious plans to stimulate consumption and expand domestic demand, aiming to drive economic growth and enhance the quality of life for its people.
During the opening meeting of the third session of the 14th National People’s Congress in Beijing, Chinese Premier Li Qiang delivered a government work report on behalf of the State Council. The report highlighted the importance of consumption as a key driver and stabilizing force for the nation’s economy.
Targeted Measures to Boost Spending
To achieve these goals, the government will roll out a series of targeted measures designed to unlock diverse and differentiated consumption potential. Special initiatives will be launched to encourage consumer spending, focusing on upgrading and improving the quality of consumer markets.
One significant move includes issuing 300 billion yuan (approximately $41.3 billion) in ultra-long-term special treasury bonds. These funds will support the upgrading of old industrial equipment and household appliances, stimulating both industrial growth and consumer purchasing power.
Increasing Household Incomes
The government plans to increase household incomes through multiple channels, particularly for middle- and low-income groups. Efforts will be made to improve the wage growth mechanism for workers, ensuring that income growth keeps pace with economic development.
Expanding Service Supply
To meet the growing demand for diversified services, China will expand the supply in sectors such as healthcare, elderly care, childcare, and home economics. This will be achieved by relaxing market access, reducing restrictions, and optimizing regulatory frameworks to encourage private sector participation.
Boosting Culture, Tourism, and Sports
The government aims to refine and optimize the vacation system to promote spending in culture, tourism, and sports. By making it easier for people to take time off, China hopes to stimulate domestic tourism and related industries.
Enhancing Consumption Environment
Other measures include improving duty-free shop policies to attract inbound consumption and advancing the development of international consumption center cities. Strengthening commercial infrastructure in county-level regions is also a priority to ensure balanced regional development.
To create a safer and more reliable consumption environment, the government will enhance the full-caliber consumption statistics system and strengthen consumer rights protection.
