In a move to further bolster consumption, China's Ministry of Finance (MOF) on Tuesday announced extension of the existing interest subsidy policies for loans to business entities in the service sector and for personal consumption loans up to the end of 2026.
Under a plan unveiled last August, borrowers may receive interest rebates of 1 percentage point annually for no more than one year, according to Vice Minister of Finance Liao Min at a press conference in Beijing.
The coverage of the service-sector loan subsidy policy, notably, has been expanded to include digital, green and retail sectors, with the maximum loan amount eligible for subsidies per borrower raised from 1 million yuan (143,700 U.S. dollars) to 10 million yuan and the subsidy cap raised to 100,000 yuan.
The action plan originally targeted service sector businesses in the eight categories of catering and accommodation, health care, elderly care, childcare, housekeeping, culture and entertainment, tourism and sports.
The personal consumption loan subsidy policy will include credit card installment services, removing sectoral restrictions.
"For individual consumers, the celling on interest subsidies for a single transaction has been raised. The amount of interest subsidy a consumer can receive for a single transaction at a bank has been raised from 500 yuan to 3,000 yuan, thereby better meeting people's needs for large-scale consumption and helping to boost purchasing power," he said.
Liao said the program will cover more financial institutions, allowing eligible borrowers to apply directly to these banks.
"The number of financial institutions eligible to operate this business has expanded from nearly 20 to over 500 across the nation. The policy has shifted from supporting traditional consumption to serving new scenarios and new business models, achieved broad coverage in urban and rural areas and integrated online and offline services in a bid to benefit a wider range of business entities and the general public," Liao said.
The plan forms part of China's broader efforts to stimulate services consumption and cultivate new growth drivers.
China extends personal consumption loan interest subsidy
Leaders of European Union (EU) countries will hold an emergency summit in Brussels on Thursday to discuss U.S. threats related to Greenland, European Commission Spokesman Olof Gill said on Monday.
The summit will assess possible retaliatory measures in response to threatened tariffs imposed by U.S. President Donald Trump on countries that oppose his plan to "acquire" Greenland.
Gill said the EU continues to engage "at all levels" with Washington over its new tariff threats and is taking "every possible step" to protect the bloc's economic interests. He added that the use of the anti-coercion instrument is not ruled out.
He stressed that the priority is engagement rather than escalation with the United States. However, "should the threatened tariffs be imposed, the European Union has tools at its disposal and is prepared to respond," he added.
Meanwhile, European leaders continued to condemn the U.S. tariff threats.
German Chancellor Friedrich Merz on Monday stressed the principles of sovereignty and territorial integrity regarding the Greenland issue, adding that "we want to hold our ground as a country and as a continent."
Speaking at a press conference in Berlin, Merz said Denmark and the people of Greenland can "count on our solidarity." While Germany is ready to support talks with Washington, the basis of these talks must always be the principles of sovereignty and territorial integrity, he stressed.
Tariff threats would weaken transatlantic relations, Merz said, warning against a risk of escalation.
He said while U.S. consumers would ultimately pay the price of such duties, they would also damage the European and German economies.
On the same day, multiple German industrial associations criticized the renewed U.S. tariff threats as damaging not only to European industries but also to the American economy. They urged the EU to respond decisively, including through counter-tariffs.
Following talks with German Vice Chancellor and Finance Minister Lars Klingbeil, French Economy and Finance Minister Roland Lescure on Monday emphasized that while dialogue with Washington should continue, it is essential to set clear red lines. He called U.S. attempts to pressure allies through blackmail and economic coercion "unacceptable".
Trump on late Monday threatened to impose a 200-percent tariff on French wines and champagnes.
In responding to a reporter's question about French President Emmanuel Macron declining to join the "Board of Peace" initiative he proposed to rebuild Gaza, Trump said: "I'll put a 200 percent tariff on his wines and champagnes, and he'll join, but he doesn't have to join."
Media reports cited anonymous sources close to Macron as saying that France intends to reject Trump's invitation, as the board's charter appears to go beyond its role of overseeing the rebuilding of war-torn Gaza.
Swedish Finance Minister Elisabeth Svantesson said on Monday that the United States' tariff measures linked to Greenland are "absurd," stressing that Europe should not bow to pressure and must respond firmly.
Speaking to Swedish television, Svantesson said Trump's threat to impose tariffs in an attempt to force Greenland "into U.S. hands" marked "a new low" in global trade policy.
Svantesson called for a tough and coordinated European response, saying the countries concerned broadly agree they should be "tough and harsh" in pushing back.
British Prime Minister Keir Starmer said on Monday that Greenland's future rests with the people of Greenland and Denmark, and the U.S. use of tariffs against allies is "completely wrong."
Norwegian Prime Minister Jonas Gahr Store confirmed in a statement on Monday that he received a text message on Sunday afternoon from Trump.
In the statement, Store reiterated Norway's position on Greenland, saying Greenland is part of the Kingdom of Denmark and that Norway "fully supports the Kingdom of Denmark on this matter."
Store said the text message from Trump was sent in response to a short message he had sent earlier the same day on behalf of himself and Finnish President Alexander Stubb.
According to Store, in their message to Trump, they voiced opposition to the announced tariff increases, pointed to the need to de-escalate, and proposed a telephone conversation between Trump, Stubb and Store on the same day.
Trump announced on Saturday that the United States would impose a 10-percent tariff from Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, Britain, the Netherlands and Finland over Greenland, and raise the levy to 25 percent from the beginning of June unless a deal is reached for the United States to "purchase" the territory.
Greenland, the world's largest island, is a self-governing territory within the Kingdom of Denmark, with Copenhagen retaining control over defense and foreign policy. The United States maintains a military base on the island. Since returning to office in 2025, Trump has repeatedly expressed a desire to "obtain" Greenland.
EU to hold emergency summit on Thursday over Trump's Greenland threats
