Daijiworld Media Network - Beijing
Beijing, Mar 17: China has announced a ‘Special action plan to boost consumption’ as part of its efforts to strengthen domestic demand and address economic challenges. The general office of the central committee, an office directly under the ruling communist party, outlined measures to enhance income levels, reduce financial burdens, stabilize markets, and promote tourism. The plan aims to encourage spending by increasing earnings and easing economic pressures on individuals, while also introducing steps to support the stock market and expand bond products for individual investors.
The announcement follows Premier Li Qiang’s recent government work report, where boosting consumption was identified as a top priority. China’s economy has been grappling with deflationary pressures, with consumer prices seeing their sharpest decline in over a year and the producer price index remaining in contraction since October 2022. The new plan seeks to counter these trends by implementing policies that will stimulate economic activity over time.
Tourism is expected to play a key role in the strategy, with expanded visa-free arrangements and optimized entry policies aimed at attracting more visitors. Special support will be given to ice and snow regions to develop them into world-class winter tourism destinations. These efforts come as Chinese leaders increasingly emphasize the need to strengthen domestic demand, especially in light of uncertainties in global trade.
Economists view the initiative as a long-term strategy rather than an immediate solution. ING’s chief economist for Greater China, Lynn Song, noted that the plan acknowledges deeper structural issues such as slow wage growth, the declining property and stock markets, and gaps in the social safety net. She emphasized that while the measures will take time to show results, they signal a clear commitment to shifting China toward a consumption-driven economy.
Chinese authorities have also pledged additional financial support, including an extra 300 billion yuan ($41.45 billion) in special treasury bonds for consumer subsidies. Richard Harris, CEO of Port Shelter Investment Management, highlighted the urgency of revitalizing the domestic economy, stating that authorities are determined to keep economic momentum going, even if the export sector faces challenges.
As the government rolls out its action plan, the success of these measures will depend on effective implementation at the local level and sustained policy support to ensure long-term economic stability.