China reveals plan to increase household consumption amid economic slowdown
(MENAFN) China has announced a comprehensive plan to address the slump in household consumption that is impacting its economic growth. The new strategy, revealed in a document published on the government's website, outlines 20 general measures aimed at revitalizing the economy. This initiative focuses on enhancing care services for the elderly, improving childcare provisions, and increasing support for food-related activities.
The plan comes in response to a July summit where China's Communist Party committed to stimulating consumer spending, which has been sluggish since the end of 2022 when strict coronavirus restrictions were lifted. The government is particularly concerned about the aging population and the declining birth rate, which has been attributed to high education costs and insufficient social support. To address these issues, the plan proposes increased provision of elderly care services and enhanced childcare options. It also includes income tax cuts to alleviate the financial burden on families with young children and the elderly.
Additionally, the plan promises greater financial support for eligible companies and small businesses in the services sector, with a focus on bolstering their access to bank financing. In the food sector, the government aims to boost consumer engagement through more food-themed festivals and the promotion of popular snacks. This multi-faceted approach is designed to stimulate domestic consumption and drive economic growth in the face of current challenges.
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