New Measures Aim to Boost Domestic Demand and Economic Momentum
China has unveiled a comprehensive action plan to revitalize domestic consumption, signaling confidence in a market rebound by 2025. Released Sunday, the eight-part blueprint targets both supply and demand fundamentals, with analysts calling it a milestone in post-pandemic economic strategy.
The plan prioritizes raising incomes for urban and rural residents while introducing subsidies and tax incentives to strengthen purchasing power. For businesses, it emphasizes service quality improvements across sectors like tourism and healthcare, alongside modernization efforts in big-ticket industries including electric vehicles and smart home technology.
"This dual approach addresses both immediate spending capacity and long-term consumer confidence," said Qu Qiang, fellow at the Belt and Road Research Center at Minzu University of China. "By 2025, we expect these structural reforms to create synchronized growth across manufacturing and services."
Business Environment Overhaul Underway
Authorities plan to streamline regulations affecting retail and e-commerce platforms while establishing stronger consumer protection mechanisms. Local governments have been instructed to implement region-specific incentives, with coastal hubs like Shanghai and Shenzhen piloting digital currency integration in retail systems.
The measures come as international investors monitor China's shifting economic drivers. With exports facing global headwinds, analysts suggest successful implementation could see domestic consumption contribute over 65% to GDP growth by 2026 – a potential game-changer for Asian markets and supply chains.
