SEOUL, Sept. 6 (AJP) -A recent report revealed on Thursday that Chinese regions are intensifying efforts to boost consumption through expanded policy support, including direct financial incentives for consumer goods trade-ins and corporate equipment upgrades. These measures align with a national initiative to strengthen domestic demand as the economy recovers.
The increased focus on consumption comes as domestic spending, despite its vast potential, faces ongoing pressure while playing a crucial role in China's overall economic growth, according to a report by the China Securities Journal. Experts suggest that these enhanced policy measures will not only support stable short-term consumption growth but also establish a strong foundation for long-term economic development.
Recently, various Chinese regions, including Hunan, Guangdong, and Shanghai, have unveiled detailed plans to stimulate consumer demand, as reported by the China Securities Journal. These plans expand trade-in policy coverage and increase support for sectors such as automobiles and home appliances. The new regional measures also specifically mention utilizing funds from ultra-long special treasury bonds.
A key feature of Shanghai's action plan is the increased financial backing from both ultra-long special treasury bonds and local matching funds, totaling over 4 billion yuan ($563.3 million). The plan also boosts financial support for specific trade-ins, such as doubling the subsidy for new-energy vehicle trade-ins from 10,000 to 20,000 yuan. The policy now covers additional home appliances like furniture and vacuum cleaners.
Guangdong's provincial government has also introduced a plan to better use ultra-long special treasury bond funds to support consumer goods trade-ins, with increased financial backing for products such as automobiles.
These local initiatives follow a national plan released in July by the National Development and Reform Commission and the Ministry of Finance. This plan allocated 300 billion yuan from ultra-long special treasury bonds to support equipment renewal and consumer goods trade-ins.
Cities are also ramping up efforts to promote trade-ins. For example, Shantou in Guangdong reported that its initiatives since May have generated total consumption of 200 million yuan as of July 10. The city plans to organize various activities to further stimulate market vitality and create a favorable consumption environment.
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