China's financial institutions have taken measures to step up the rollout of consumer loan subsidy programs during the ongoing eight-day National Day and Mid-Autumn Festival holiday season to spur holiday spending nationwide.
At a shopping mall in Shanghai, a customer surnamed Wang was browsing through home appliances, taking full advantage of the holiday sales to furnish his new apartment in one go.
"I want to purchase all the appliances at once, so I've taken out a consumer loan. As consumer loans are subsidized by the state, the state subsidy can help ease my financial burden, and the process is very convenient. It allows me to quickly get everything I need," Wang said.
Wang's purchases of home furnishings and electronics qualified for a government interest subsidy, allowing him to enjoy a one percent annualized discount. Eligible consumer loans can receive a maximum subsidy of 3,000 yuan (about 420 U.S. dollars) in interest rate discounts. The financial product offers fully online approval, and when it's time to repay, the subsidized interest rate is automatically deducted, making the process both straightforward and cost-effective. "Market response shows the subsidy policy has effectively energized consumer activity. Our consumer loan issuance has risen by 14 percent month on month, with auto loans up 12 percent month on month," said Yang Liwen, general manager of the Retail Credit Business Department, the Bank of Communications.
In Meishan City, southwest China's Sichuan Province, the city has kicked off its 30th annual Consumption Season campaign. This year's campaign is of several new features, with multiple banks launching mobile service counters offering on-site consumer loan applications processing. As a result, consultations and purchase inquiries have increased by over 50 percent year on year.
"For this year's Consumption Season, we've opened a green approval channel. After making purchases, customers can immediately apply for consumer loans here, get approved in real time, and enjoy discounted rates," said Zhu Kai, customer manager of the Dongpo District Branch, the Postal Savings Bank of China (Meishan).
China's loan interest subsidy policies spur holiday consumption
As the diplomatic engagement between the United States and Iran continues despite a faltering ceasefire, a former commander of Iran's Islamic Revolutionary Guard Corps (IRGC) has said that Iran is prepared to use military power to break the U.S. maritime blockade should the negotiations collapse or run on too long.
Mohsen Rezaee, who also currently serves as a member of the Iranian Expediency Discernment Council, struck a confident tone about Iran's current trajectory in an exclusive interview with China Global Television Network (CGTN) in Tehran on Wednesday.
He said the country has withstood over two decades of crippling sanctions and continued to move forward.
"We have been under sanctions for more than 20 years. The number of sanctions likely exceeds 2,000, targeting individuals, enterprises, corporations, ships, insurance companies, and even foreign countries that interacted with us. However, we have managed to find solutions to neutralize these sanctions, and we will continue to do so moving forward," he said.
He said Iran aims to ease the sanctions burden through talks with the U.S., although at the same time, he said, Iran is ready to shift to a military response if the path to a peaceful resolution closes.
"Furthermore, we will compel the U.S. to lift these sanctions. We will force the U.S. to end the maritime blockade -- either through negotiations or, should they resist, through direct action and we will attack U.S. warships. Therefore, despite all the pressures, the future of our economy is bright and promising, while the future of the US economy is bleak," he said.
While any new war against Iran would be a dead end, the best way out for the U.S. is to continue talks, according to the senior official.
"We have prepared ourselves so that if the maritime blockade continues beyond a certain timeframe, we will launch an attack and break the blockade. The Americans have no choice but to negotiate. Continuing this war is a journey into a very dark tunnel for the United States. The more America chooses to fight, the deeper it enters a tunnel with no end. Yet for us, the path is perfectly clear. America is moving toward us in the dark, while we are monitoring their every move," he said.
Former IRGC chief says Iran ready to break U.S. naval blockade by force if talks fail
