China to boost consumer spending, improve child care with new policies
CHINESE authorities said on Thursday (Feb 16) that they would craft policies aimed at stimulating spending on housing and unlocking consumer savings that have built up during the pandemic.
The policies include efforts to help the elderly, improve childcare services and encourage couples to have more children – announcements that followed a historic decline in China’s population last year.
The plans from China’s state planning body, as well as the finance and industry ministries, were outlined in Qiushi, the ruling Communist Party’s journal. The central bank also said this week that it would encourage financial institutions to lend more to private sector businesses.
While not all new in content, the slew of announcements underscores a sense of urgency on the part of the Chinese authorities in their efforts to reinvigorate the economy. Last year, China slumped to one of its weakest levels of growth in nearly half a century, battered by its zero-Covid policies.
Analysts expect stimulus measures to be announced over the coming months, noting that data has shown some signs of recovery in the economy, although it is still far from firing on all cylinders.
Liu Kun, China’s finance minister, wrote in Qiushi: “The foundation for economic recovery is not yet solid and there is great uncertainty for fiscal revenue.” He added that while fiscal revenue would grow this year, the growth rate would not be too high.
The National Development and Reform Commission, China’s state planner, said it would work on plans to boost incomes, improve the spending power of low and middle-income citizens, as well as encourage spending on housing, new energy vehicles and eldercare services.
The finance ministry added that policymakers would also seek to encourage and attract more private capital to the market, while taking steps to curb the increase in hidden debts and prevent illegal and irregular debt raising.
Meanwhile, Jin Zhuanglong, the industry and information technology minister, said that China would accelerate the research and development of key technologies. REUTERS
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