China announces package to boost domestic consumption

China’s National Development and Reform Commission (NDRC) has announced a 20-item package to boost domestic consumption. The package will encourage consumption of a wide range of products and services, including new energy vehicles (NEVs), household appliances, electronics, food, culture and tourism, as well as in rural areas. According to a statement released by the NDRC, efforts will also be made to improve housing and better living. China has announced a new 20-item package to boost domestic consumption. As policymakers look for ways to boost confidence and support recovery, China is taking steps to increase credit to private enterprises and expand other financing measures to small businesses. Li Chunlin, vice chairman of China’s National Development and Reform Commission (NDRC), said the measures aim to balance the consumption of high-priced goods, expand the consumption of services, promote rural consumption, explore new types of consumption, improve consumption facilities and optimize the consumption environment. The NDRC said in a statement that local authorities should not announce new measures to restrict car purchases, while regions that have already implemented restrictive measures on car purchases should improve these measures to adapt to local conditions. Li reported that car production and sales in China grew significantly in the first half of the year, increasing by 9.3 percent and 9.8 percent respectively. Noting that the measures approved by the State Council aim to better implement the strategy of expanding domestic demand, fully emphasizing the fundamental role of consumption in stimulating economic growth and maintaining the country's high-quality development, Li said that local people's consumption has seen a significant recovery in the revenues of the catering and tourism sectors in the first half of the year. Li also explained that the combined revenues of the catering sector increased by 21.4 percent annually during the period in question, while domestic tourism revenues increased by 95.9 percent.