The Chinese government has presented an action plan aimed at stimulating consumption in the country. The plan, disclosed by the Central Committee of the Communist Party of China and the State Council, consists of 30 measures distributed across eight areas of action.
One of the main guidelines of the plan is to increase the income of the population, support their purchasing power, and improve the quality of service consumption, as well as the renewal of durable goods. It emphasizes increasing wages, generating property wealth, and improving the conditions of rural workers.
Additionally, it proposes reducing the economic burden on families in areas such as education, healthcare, and elder care. Subsidies for child care and education are contemplated to alleviate the high costs of raising children that lead many couples to postpone parenthood.
The plan also seeks to create a favorable environment for consumption, including measures such as the protection of labor rights, improvement of commercial infrastructure, and reduction of spending restrictions. According to economist Teng Tai, this strategy reflects an unprecedented attention to strengthening consumption and proposes a transition towards a social welfare model.
Chinese Premier Li Qiang has emphasized the importance of boosting domestic demand, recognizing the weakness of effective demand and consumption in the country. As part of this push, around 300 billion yuan will be allocated to incentivize the replacement of home appliances and electronics.
Despite the Chinese economy growing by 5% in 2024, challenges such as low domestic and international demand, deflation risks, insufficient stimuli, an ongoing real estate crisis, and a lack of consumer and private sector confidence persist.
