The central government has unveiled a swathe of initiatives designed to boost domestic consumption, which has been a major economic bugbear in recent years.
The Special Action Plan aims to “make domestic demand the main engine and anchor of economic growth” through “vigorously” boosting consumption, stimulating domestic demand across the board, and increasing spending power by raising earnings and reducing financial burdens, according to a report by Xinhua.
Divided into eight sections, the plan’s objectives include promoting wage growth through improving minimum wage adjustment mechanisms, the expansion of property income channels, and the development of new tech products (such as smart wearables, brain-computer interfaces and 3D printing) to spur rapid-growth consumption sectors.
It also covers emerging sectors such as the low-altitude economy, silver tourism (targeting elderly travellers), and winter sports. Regarding the latter, the plan said that mainland regions with abundant snowfall would be developed into “globally recognised winter tourism destinations.”
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The plan positions consumption not just as an economic target but as a means to enhance quality of life, according to Xinhua. It raises the possibility of establishing a childcare subsidy system, broadening the current maternity insurance programme, increasing benefits for the elderly, and tightening protections around workers’ rights to rest and holidays.
In addition, financial institutions will be encouraged to increase the issuance of personal consumption loans, provided risks are controllable.
Richard Harris, chief executive at financial firm Port Shelter Investment Management, told CNBC that Chinese authorities were intent on fixing the country’s sluggish domestic economy.
“The authorities are determined to stimulate the economy, determined to keep it going, and even if we see some issues with the export side of the economy, they are determined to get the domestic economy going,” he said.
