China has announced a new plan with special initiatives aimed at boosting consumption, as the country seeks to make domestic demand the main driver of its economic growth.
The plan, released on Sunday by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, focuses on stimulating domestic demand by increasing earnings and reducing financial burdens for consumers.
It outlines measures to improve spending power, generate effective demand through high-quality supply, and enhance the consumption environment to encourage people to spend more.
Organized into eight major sections, the plan adopts a comprehensive approach by addressing factors such as income growth, enhancing the quality of service consumption, upgrading big-ticket item consumption, and improving the overall consumption environment.
To boost incomes, the plan aims to promote reasonable wage growth by strengthening employment support and improving minimum wage adjustment mechanisms. Additionally, China plans to expand property income channels by stabilizing the stock market and developing more bond products suitable for individual investors.
The plan also explores ways to unlock the value of legally owned houses by farmers through rental arrangements, equity participation, and cooperative models.
Interestingly, the plan emphasizes both traditional consumption sectors like housing and automobiles, as well as emerging categories such as artificial intelligence-powered products, low-altitude economy projects, and “silver tourism” catering to older adults.
China intends to accelerate the development and application of new technologies and products, including autonomous vehicles, smart wearables, ultra-high-definition video, brain-computer interfaces, robotics, and 3D printing, to create new high-growth consumption sectors.
These measures reflect a geographically nuanced approach, with targeted policies for rural areas, regions rich in ice and snow resources, and urban centers. Local authorities are given the flexibility to implement policies based on regional conditions.
The plan supports regions with abundant ice and snow resources to develop into globally recognized winter tourism destinations. It also emphasizes enhancing inbound consumption by expanding visa-free arrangements and optimizing regional visa-free entry policies.
By linking consumer spending to broader social goals like improving elderly care, supporting childcare, and promoting work-life balance, the plan positions consumption growth not just as an economic target but as a means to enhance the quality of life.
This comprehensive strategy signals China’s commitment to boosting domestic consumption and underscores the country’s focus on sustainable economic growth driven by its own people.
