(ECNS) -- China revealed a plan on special initiatives on Sunday to increase consumption, outlining 30 measures to stimulate consumer spending. On Monday, six government departments provided further details on the initiative at a press conference by the State Council Information Office.
This year, China sees a strong start in consumption.
According to the National Bureau of Statistics, the country's retail sales of consumer goods grew 4 percent year-on-year in January and February, 0.5 percentage points higher than the full-year growth rate for 2024.
Before and after the Spring Festival, China's economy entered a phase of optimistic development and asset revaluation, with social expectations and market confidence significantly improving, said Luo Zhiheng, chief economist at Yuekai Securities.
According to the National Development and Reform Commission (NDRC), in the first two months of 2024, retail sales of new energy passenger vehicles reached 1.34 million units, up 26 percent year-on-year; sales of first-tier energy-efficient home appliances totaled 24.1 billion yuan, up 36 percent year-on-year.
Now, China has decided to accelerate consumption growth.
Its supportive measures include seven major initiatives designed to strengthen public confidence, stabilize expectations, and enhance consumer spending power.
On the demand side, these measures include actions to increase income for urban and rural residents and support consumption capacity.
On the supply side, there are initiatives to improve service quality for consumers and promote the upgrade of large consumer goods.
On the external side, the plan aims to improve the consumption environment and optimize restrictive measures.
To boost personal income, the plan proposes reasonable growth in wages, while for the first time, it also emphasizes the importance of stabilizing the stock and real estate markets in consumption promotion policies.
Luo stated stabilization of the real estate market will drive consumption in related sectors while stable asset prices will help increase residents' property income, which in turn will stimulate consumer spending.
In the plan, a series of measures target investment in people, which include strengthening healthcare, education, elderly care, and employment security to ease residents' concerns and increase their willingness to spend.
China doubled funding from 150 billion yuan (about $20.74 billion) last year to 300 billion yuan this year to stimulate consumer demand.
A more diverse and inclusive consumption supply is on the way. The plan enhances services to boost cultural, sports, and tourism spending, supporting extended hours for tourist sites and streamlined event approvals.
Further, the government will strictly enforce regulatory measures to ensure that consumers can spend safely. Market regulators will launch specialized campaigns targeting major consumer concerns, including illegal food additives, counterfeit products, price fraud, and false advertising.
Besides, to address the issue of lack of time for consumption, the plan tackles challenges like overtime culture. It proposes measures to ensure rest rights, including enforcing paid annual leave, banning illegal overtime, encouraging flexible holidays, and promoting spring and autumn breaks for schools in certain areas.
Luo believes that, given the potential decline in external demand, the plan will help improve overall consumption ability, the willingness to spend, and150 billion yuan (about $20.74 billion) adaptability to consumer needs.
The call to action has been sounded, but the real challenge lies in shifting consumption towards endogenous growth.
When more office workers say goodbye to overtime and take leisurely strolls in shopping malls, people from all over the country experience "museum nights," and seniors board specialized trains in search of poetry and distant dreams, a new chapter in China's consumption story will have truly begun. (By Gong Weiwei)
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