China has published a plan to stimulate weak household consumption, which is negatively affecting the growth of the world’s second-largest economy, and aims in particular to care for children and the elderly and provide food, according to what was reported by Agence France-Presse.
The plan, which includes 20 general measures and serves as a roadmap for ministries and local authorities, was published by the Chinese government on its website on Saturday evening.
After a summit meeting last July, China’s ruling Communist Party pledged to stimulate consumption, which has been in a slump since the lifting of anti-coronavirus measures at the end of 2022 after imposing severe restrictions on activities.
Under the plan, the government urges “increased provision of elderly care services” through various measures, a developmental step for China’s economy as the population ages rapidly.
Child care
The text of the plan calls for:
- Developing childcare provision, against the backdrop of a significant decline in the desire of young Chinese to have children due to the high cost of education and lack of social assistance.
- Reduce income tax to offset the cost of caring for children under three and the elderly.
- The government has promised to ensure that eligible companies and small businesses in the services sector benefit from greater financial support, especially from banks.
Other procedures
- The text calls for more food-themed festivals or increased promotion of Chinese people’s favorite “snacks.”
- The plan pledged to encourage major foreign food companies to open sales outlets in China.
- For housing, the document called for improving the quality of supply or even renovating unused accommodation in rural areas with a view to opening more hotels or guest houses there.
- Call for financial support for forms of tourism that are still undeveloped in the country, including sports tourism, cruises, and camping.
China aims to raise its GDP by about 5% this year, noting that it rose in the second quarter of this year by 4.7% on an annual basis.
