The Chinese mainland is ramping up efforts to fuel its economy by boosting consumption, according to the latest government work report submitted to the national legislature.
In a significant move, the government announced the issuance of 300 billion yuan ($41.7 billion) in ultra-long-term special bonds aimed at supporting a nationwide consumer goods trade-in program. This initiative is set to enhance domestic demand and improve investment efficiency.
Li Yunze, head of the National Financial Regulatory Administration, shared that financial institutions will be encouraged to create tailored financial products to meet diverse consumer needs. Additionally, authorities are exploring ways to raise credit limits and extend loan terms for long-term, high-value consumption, making it easier for people to purchase big-ticket items.
Beyond just consumer goods, the mainland is also focusing on expanding access in sectors like healthcare, elderly care, childcare, and domestic services. This multi-faceted approach is expected to drive a broad spectrum of consumption growth.
\"China's strategy in recent years has focused on expanding domestic demand. While boosting big-ticket purchases remains important, there is a growing emphasis on service consumption, which marks a significant shift,\" said Zeng Gang, director of the Institute for Urban Development at East China Normal University.
Moreover, the mainland is aiming to ignite new consumption trends by fostering digital, green, and smart consumer markets. These efforts are already showing results; in 2024, consumer spending accounted for 44.5% of economic growth, contributing 2.2 percentage points to GDP. Service consumption specifically grew rapidly, with per capita spending on services reaching 13,016 yuan, a 7.4% increase from 2023.
With these comprehensive measures, the Chinese mainland is setting the stage for a robust economic rebound driven by both goods and services consumption.
Reference(s):
China boosts consumption with new stimulus push, eyes services boom
cgtn.com
