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China unveils plan on special initiatives to boost consumption
Updated: March 16, 2025 19:12 Xinhua

BEIJING, March 16 -- China on Sunday made public a plan on special initiatives to increase consumption, as the world's second-largest economy moves to make domestic demand the main engine and anchor of economic growth.

The plan, issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, aims to vigorously boost consumption, stimulate domestic demand across the board, and increase spending power by raising earnings and reducing financial burdens.

It also aims to generate effective demand through high-quality supply, improve the consumption environment to strengthen consumer willingness to spend, and address prominent constraints on consumption.

The plan, organized into eight major sections, adopts a holistic approach by simultaneously addressing factors such as income growth, service consumption quality enhancement, big-ticket consumption upgrading, and consumption environment improvement.

The plan aims to promote reasonable wage growth by strengthening employment support in response to economic conditions and improving the minimum wage adjustment mechanisms. China will expand property income channels through measures to stabilize the stock market and develop more bond products suitable for individual investors.

The plan calls for exploring ways to unlock the values of houses legally owned by farmers through rental arrangements, equity participation and cooperative models.

Notably, the plan emphasizes both traditional consumption sectors like housing and automobiles, alongside emerging categories such as artificial intelligence-powered products, low-altitude economy and silver tourism.

China will accelerate the development and application of new technologies and products including autonomous driving, smart wearables, ultra-high-definition video, brain-computer interfaces, robotics and additive manufacturing, more commonly known as 3D printing, to create new high-growth consumption sectors.

These measures reveal a geographically nuanced approach, with targeted policies for rural areas, regions rich in ice and snow resources, and urban centers -- allowing local authorities flexibility via implementation based on regional conditions.

Support will be given to ice and snow resource-rich regions to help them develop into globally recognized winter tourism destinations. The plan also emphasizes developing inbound consumption by systematically expanding unilateral visa-free arrangements and optimizing regional visa-free entry policies.

By connecting consumer spending to broader social goals like elderly care improvement, childcare support and work-life balance, the plan embeds consumption growth within China's wider development objectives, signaling that consumption is being positioned not just as an economic target but as a means to enhance quality of life.

Accordingly, China will consider establishing a childcare subsidy system. It will guide eligible regions to include individuals in flexible employment, rural migrant workers, and those in new forms of employment who are covered by the basic medical insurance for employees, in the country's childbirth insurance program.

Regarding elderly care, the country will in 2025 increase the fiscal subsidies for basic old-age benefits and basic medical insurance for rural and non-working urban residents. Additionally, basic pension benefits for retirees will be appropriately raised.

The country will work to strictly implement the paid annual leave system -- ensuring that workers' rights to rest and vacation are legally protected. It will also prohibit the unlawful extension of working hours.

Financial institutions will be encouraged to increase the issuance of personal consumption loans, provided risks are controllable. They should reasonably set loan limits, terms and interest rates, according to the plan.

Zou Yunhan, a researcher with the State Information Center, said consumption is playing an increasingly important role in boosting economic growth, but that some challenges still remain in the quest to further unlock consumer potential.

Looking ahead, Zou called for collective efforts from all sectors to fully implement the action plan and ensure its effectiveness. "Driven by innovation and supportive policy initiatives, China's consumer market is poised for steady growth this year. New opportunities are emerging, which will provide a strong impetus for the country's high-quality economic development."

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