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China has announced a plan to revive domestic consumption while the Government of President XI Jinping is fighting to reverse weak trust and deflation pressures in the second largest economy in the world.
The Government will “vigorously increase consumption” and “expand their home demand in all directions”, according to Xinhua, a Chinese State Gazette Agency, an echo of Xie’s incentive at the end of last year for Creator Politics crossing toward supporting demand After permanent encouragement to strengthen the industry.
The State Council plan, the Chinese cabinet, will focus on increasing revenue, real estate stabilization and shares and improvement of medical and pension services, although there have been a few details available about the planned fiscal expenditures.
The news of the “Special Action Plan for Increasing Consumption” raised on Monday, and the Hong Konga Hang Seng index increased by 1.1 percent, while Futures for the Brent Raw oil, an international floor scale, climbed to $ 1 percent to $ 71.30 per barrel. The CSI 300 Continental Chinese index was flat.
More details about the plan were expected on Government Brifing on Monday afternoon. CSI 300 SANGAJA and Shenzhena stock meter on Friday Facing positive For the year to date, in anticipation of consumption briefing.
The announcement of the plan followed, which came late on Sunday Last week’s “two sessions” meeting In Beijing, where legislators repeated consumption as a major priority.
Homemade consumption in China was weak since the end of the Coid-19 locking, more than two years ago, because households are cautiously cautious. Consumer prices have fallen into deflation In February, although reading influenced the new year’s lunar holiday.
Slowing in the Chinese huge property sector, partly guided by the official separation drive, and now in the fourth year, has also re -launched calls for economists to strengthen domestic demand.
The information published on Monday by the National Bureau for Statistics showed that retail sales increased by 4 percent in January and February a year earlier, beating an increase of 3.7 percent in December and in accordance with the prognosis of the analyst survey of analyst survey.
Politician brothers last September discovered a long -awaited package To support the economy, but the measures have largely focused on the stock markets and disappointed investors.
The new consumption plan includes a promise to increase the minimum wage, strengthening support for education and establishing a subsidial child care system – which is a particularly gorne question as it has a Chinese population rejected three consecutive years.
Lynn Song, the main economist for the Great China, said that the plan “is a significant focus on increasing capacity and willingness of households to consume”, and that if it is properly implemented, it could “help the Chinese economic transition according to a model of growth -oriented consumption.”
The data published on Monday also showed that industrial production increased 5.9 percent of the year in the first two months of 2025, slowing down with 6.2 percent in December, but beating the expectations of analysts of 5.3 percent.
The new package will also promote “input” consumption. Beijing has prolonged journey without visa Dozens of countries last year until the effort to revive foreign tourism after a pandemic.
He also highlighted certain sectors such as “snow and ice.” China has built several closed ski resorts in recent years, including The world’s largest in Shanghaiwhich is open in September.
Xu Chenggang, a senior scientific scientist at the Stanford University Economics Center and institutions, said Beijing’s turn on consumption issued an official recognition that the economic situation was “difficult”.
But policy creators still tried to take concrete steps to encourage demand, he added.
“If we look at the publicly announced policy measures .. “Although on the one hand they admit that something is wrong.. They are still emphasizing more on the supply side.”
Additional reporting William Sandlund in Hong Kong
