China has announced new measures to boost consumption by getting people to spend more on cars, property, electronic products, and holidays as part of a broader effort to reboot the country’s stalled post-pandemic economic recovery.
The State Council announcement on Monday will be seen as evidence that Mr Xi’s political directive is filtering through into actual policy, although some economists warn the country faces a recession if stimulus remains restrained. The document also pledged to drive housing demand by increasing the supply of rental stock, renovating old residential areas and investing more in rural housing. It also singled out home decoration, electronic products and health services as areas for increased consumption.
However, China’s leaders last week called the pace of recovery from the pandemic as “tortuous” and warned the economy faced new difficulties and challenges. As well as increasing consumption, Beijing wants to tackle high local government debt and rising unemployment.