China will give priority to expanding domestic demand this year, taking multiple measures to encourage people to consume, an official said Thursday in Beijing at a press conference on the interpretation of the government work report.
The government work report was submitted to the National People's Congress (NPC), the country's supreme organ of state power, for deliberation..
Shen Danyang, head of the government work report drafting team and director of the State Council Research Office, said China has for the first time proposed the implementation of an urban and rural residents' income growth plan.
Shen said a series of policy measures will be introduced to promote income increases for low-income groups, expand residents' property income, and improve salary and social security systems. The objective is to enable more residents to have fuller "pockets", thereby fundamentally strengthening their consumption capacity.
Meanwhile, efforts will be made to foster new growth points for consumption on the supply side, launch pilot projects of new consumption forms, models and scenarios, and cultivate consumption scenarios like culture and tourism, the automotive aftermarket and sports events, to better meet people's demands, he said.
Shen said the measures will extend beyond merely stimulating consumption, aiming instead to fully unleash the spending potential of the population.
"For instance, this year we will enhance safeguards in areas such as medical care, elderly support, childbirth and child-rearing, raise government subsidy standards for basic medical insurance, and develop inclusive childcare services. It is believed that these measures will further encourage ordinary citizens to feel more confident and willing to consume," said Shen.
Shen said China will further increase its support for offline physical retail, with a focused emphasis on subsidy measures. Priority will be given to key consumer durables with broad coverage and strong multiplier effects, such as automobiles, refrigerators, washing machines, and televisions, through trade-in programs for replacements with new items.
He said the trade-in policy will apply to more products this year, enabling more people to receive subsidies for new products.
"This year, a 100-billion-yuan special fund for promoting domestic demand through fiscal and financial coordination has been established. It is a very new policy this year. The optimized loan interest subsidy policies for business entities in service industry and personal consumption will expand the scope of support and raise the upper limit of subsidies, which will bring more consumers a greater sense of gain," said Shen.
To boost consumption and expand domestic demand, Shen said this year China will also break down barriers, remove obstacles, and further eliminate various restrictive measures on consumption, thereby smoothing the consumption cycle.
"We will adopt targeted, category-specific measures to address implicit barriers in the consumer market, and streamline the approval procedures for promotional activities. In select cities, restrictions on vehicle purchases will be further relaxed, and additional vehicle purchase quotas will be issued. Eligible street-front commercial premises will also be permitted to engage in outdoor business operations," he said.
China to take multiple measures to encourage consumption: official
China to take multiple measures to encourage consumption: official
