China unveils policy incentives to boost consumption

China's top economic planner released 20 wide-ranging measures to boost consumption on Monday, amid efforts to sustain economic recovery and promote high-quality development.

The National Development and Reform Commission (NDRC) emphasized employment optimization and income distribution, so that individuals will have more disposable income to support economic growth.

China will promote the increase in residents' income to synchronize with economic growth so as to lift residents' willingness to consume, said Li Chunlin, deputy director of the NDRC at a policy briefing on Monday.

Measures also include fully implementing the paid leave system and flexible working hours to elevate holiday spending, which sparked heated discussions online.

By 4:30 p.m. Beijing time, content under the hashtag "fully implementing the paid leave system" gathered 300 million views on China's twitter-like Weibo.

The country vows to spur consumption of a number of products, services and areas, including new energy vehicles (NEVs), home appliances, electronics, catering, culture and tourism, as well as in rural areas.

The state economic planner also pushed for the consumption of home appliances by rolling out trade-ins and the recycling of used home appliances, the notice said.

Regarding automobiles, local authorities should not unveil new measures to restrict purchasing, while regions that have already had restrictive measures on auto purchasing should improve these measures in order to adapt to local conditions, the NDRC said in the notice.

Efforts should be made to build high-quality charging infrastructure, promote the use of NEVs in rural areas, as well as to maintain and improve favorable tax incentives for NEV purchasing, according to the notice.

Having been approved by the State Council, it is said these measures are aimed at better implementing the strategy of expanding domestic demand. It is set to play a key role in boosting consumption and stimulating economic growth, while bolstering the country's high-quality development.

(CGTN)