Tongren, China – March 13, 2025 – Prosecutors explain to consumers how to buy qualified products in a supermarket on Pingxi Street in Dong County in Tongren, in the south – west of the Guizhou province of China on March 13, 2025.
Cfoto | Futura Publication | Pictures of getty
China announced a ”Special action plan to increase consumption« Sunday with the aim of adding internal consumption to the second largest economy in the world.
The General Office of the Central Committee, an office directly within the framework of the Governing Party of China, said that the Plan was to promote consumption vigorously, extend national demand and « improve consumption capacity increasing revenue and reducing loads, » according to a report translation of the report.
The wide launch also exposed other steps, such as taking « multiple measures » to stabilize the securities market and develop more good bonds for individual investors.
CSI 300 CSI Index of China and Hong Kong’s PENG SENG INDEX They slightly increased on Monday, registering gains approximately 0.1%.
This comes one week after China Prime Minister Li Qiang taught an annual report on government work that appointed consumption consumption as the greatest task of next year.
At that moment, Chinese policymakers had more and more recognized the need to counteract the deflaxation pressure at home.
China is currently facing a slow consumer landscape, with the latest pricing rate of consumption in February by registering its strongest fall in more than a year and the price of producers in the opposite territory since October 2022.
The Plan announced on Sunday also called for support to promote national tourism and domestic tourism, with the support provided for in the ice and snow regions to help them become worldwide recognized winter tourist destinations. Unilateral arrangements without visa will be expanded and regional entry policy policies will be optimized.
Although the plan does not seem to contain « nothing too new, establishing it as an action plan indicates that specific steps will be followed at local levels ». Lynn Song, the main economist in Grand China, said to CNBC.
More importantly, he said that the plan shows China commitment to By addressing long -term structural issues such as the slowdown of wages, the effect of negative wealth of real estate and stock market markets and the insufficient Social Security Network.
The Plan is calling for actions to increase the income of both urban and rural residents, as well as farmers, such as work support plans and continue to implement the unemployment insurance policy.
Song said: « They are probably multiannual directions instead of something that can be fixed in a few months. Directly, it is quite encouraging that policymakers are having a sober look at these issues and should help the long -term transition to a consumer -driven economy. »
« As they say, Rome was not built in a day, nor was it ByD And the domain of China’s EV: Many of China’s major political directives require time to bear fruit, and this document plants the long -term seeds for consumer industry long -term, « said Song.
In March, Chinese policymakers said that China has to focus more on national demand, given the possibility of « new shocks » on demand abroad, according to Shen Dusjang, head of the Government’s writing group in the Government’s Work Report and director of the State Council’s Research Office.
Chinese leaders also committed to an annual parliamentary meeting in January, additional 300 billion yuans (41.45 billion) of special treasury good treasury for consumer subsidies support.
Richard Harris, CEO of the Port Shelter Investment Management Investment Management Firm, told CNBC « Squawk Box Asia« That Chinese authorities have to focus really on fixing the domestic economy.
« Authorities are determined to stimulate the economy, determined to move on, and even if we see some problems with the export of the economy, they are determined that the domestic economy go. Because they have to do so, » added Harris.
– Anniek Bao of CNBC contributed to this report.
Leave a Reply