China introduces measures to spur consumption from cars to furniture

Consumer spending has provided a forcible boost to China's economy growth in the first half of 2023, but weak points persist prompting the government to do more to level up consumption going forward.

Chinese authorities, including the National Development and Reform Commission (NDRC) and the Ministry of Commerce, bid to tackle the problems blocking consumer spending with a slew of new measures on Tuesday.

China's total retail sales of social consumer goods saw a jump of 8.2 percent year-on-year in the first six months. Additionally, the contribution rate of final consumption expenditure growth to economic growth reached 77.2 percent, significantly higher than the previous year, official data showed on Monday.

The key sectors of cars, home appliances, furniture, and catering collectively accounting for a quarter of consumption. Three of the four were specifically targeted by authorities on Tuesday.

The NDRC promised to soon launch "effective" policies to restore and expand consumption, focusing on promoting sales of cars and electronic product, expanding rural consumption, and optimizing the consumption environment.

The Ministry of Commerce, along with other 13 departments, issued a plan to promote household consumption in order to release the potential of household consumption and further stimulate the vitality of market entities.

Specific measures include supporting enterprises to equip artificial intelligence and other technologies on smart home appliances. Additionally, supporting enterprises involved in the research and development of furniture, bathing equipment and other household products for the elderly.

It also offers to support residents in replacing or purchasing new smart home products and carrying out home renovations. It encourages financial institutions to strengthen credit support for household consumption, and optimize their loan approval processes.

The NDRC said that increase residents' income is crucial in promoting consumption and vowed to do so in order to stabilize employment, especially in relation to the support of youth employment.

So far in July, the NDRC held symposiums for private entrepreneurs on three consecutive Mondays to listen to their demands and struggles, which gathered widespread social attention. The NDRC pledged to hold these symposiums regularly, exploring ways to optimize the business environment for the private sector.

China has set an annual economic growth target of around 5 percent, with the World Bank projecting the Chinese economy to expand 5.6 percent for the year.

(CGTN)