Insignia Consultants | China looks to boost consumption amid consumer squeeze
China looks to boost consumption amid consumer squeeze
HONG KONG, March 16 (Reuters) - China's State Council unveiled on Sunday what it called a "special action plan" to boost domestic consumption, featuring measures including increasing residents' income and establishing a childcare subsidy scheme.
The plan comes as levels of consumer demand in China have suffered various setbacks in recent years, due to factors such as COVID-19 disruptions and a prolonged property slump, chilling the propensity of households to spend and adding to deflationary trends.
The plan was issued to all regions and departments to "vigorously boost consumption, expand domestic demand in all directions, improve consumption capacity by increasing income and reducing burdens," a report from the Council said.
The plan comes a week after Chinese Premier Li Qiang's work report to the National People's Congress which focused on boosting household spending to cushion the impact of weak external demand.
Pressure has been building on Chinese officials for consumer-focused stimulus measures to fend off deflationary pressures and reduce the world's second-largest economy's reliance on exports and investment for growth.
https://www.reuters.com/world/china/china-looks-boost-consumption-amid-consumer-squeeze-2025-03-16/
