China’s State Council on Monday (July 31) issued measures to restore and expand consumption in the automobile, real estate, and services sectors. The measures are being issued to give full play to the fundamental role of consumption in economic development. In a document, the State Council said that government would improve the infrastructure for charging to promote more purchases of new energy vehicles, support housing demand by expanding the supply of affordable rental housing and encourage tourism by asking local governments to cut admission fees at scenic areas or even make them free during low periods.
Speaking to state broadcaster CCTV, anonymous officials from the National Development and Reform Commission said it will take the summer, Mid-Autumn, and National Day holidays as an opportunity to expand holiday consumption.
The above development comes a week after top Chinese leaders pledged to step up policy support for the economy focusing on boosting domestic demand. The Chinese economy, which is the second-largest in the world, grew at a frail pace in the second quarter as demand weakened at home and abroad.
According to a report by the Xinhua news agency on July 24, the country’s Politburo (a top decision-making body of the ruling party) said that the government would step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence, and preventing risks.
“Currently, China’s economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment,” the Politburo was quoted as saying, after a meeting chaired by President Xi Jinping.
Though China is being seen on track to hit its modest 2023 growth target of around 5%, there were risks of annual goals being missed for the second year in a row, analysts said.
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