China releases plan to boost household consumption amid sluggish growth since lifting of anti-Covid measures

Boosting consumption. This is the objective of the plan published by the Chinese government on Saturday, August 3, which targets in particular childcare, elderly care and catering, through 20 general measures. This roadmap, intended for ministries and local authorities, is supposed to help boost household consumption. After a summit meeting in July, the ruling Chinese Communist Party had committed to focusing its efforts around this objective, against a backdrop of convalescent growth since the lifting of anti-Covid measures at the end of 2022, which had heavily penalized the activity of the Asian giant.

In its document, the government urges: “increase the supply of care services for the elderly”through various measures, including a development niche for the Chinese economy in a context of inexorable population aging. Against a backdrop of a marked decline among young Chinese people in their desire to have children, due to the high cost of education and the lack of social assistance, the text also calls for developing the supply of childcare. Income tax reductions are planned, in particular to offset the cost of care for children under 3 years old and the elderly.

The government also promises to ensure that eligible small and micro enterprises in the service sector can benefit from greater financial support, particularly from banks. In food, the text calls for holding more food-themed festivals and strengthening the promotion of “snacks” street food, which the Chinese are already very fond of. He also promises to encourage large foreign companies in the sector to open their first outlets in China.

In terms of accommodation, the document advocates for a better quality offer or for the renovation of unused housing in rural areas, in order to open more hostels or guest houses there. Other measures include the call to financially support forms of tourism (sports, cruises, camping) that are still underdeveloped in the country. China is aiming for growth in its GDP this year “about 5%”However, it only grew by 4.7% in the second quarter over a year.