Be informed about free updates
Simply log in to Chinese economy Myft Digest – delivered directly to your arrived mail.
China considers the involvement of services in the multi -million dollar subsidy program for stimulating consumption, according to officials and academics, as the second largest economy in the world is fighting for an increase in chronically weak domestic demand.
The program, which would seek to encourage the purchase of services in sectors such as travel, tourism and sports, could be launched in the second half of this year if the consumption is still lagging behind, said an official who is familiar with the issue.
An addition would come Existing trade program for goods like mobile phones or cars.
“There is a serious discussion” about the Subject Services Subject Program, said the clerk familiar with the issue. They added that if consumption was not as strong as expected in the first half of 2025, “very likely” services included in the store program were very likely.
Officials and academics have not offered the figure for the expected size of the program, but China has committed to the financing for the scheme of the goods of consumer goods at RMB300 billion ($ 41 billion) this month this month.
Economists have called China for decades to re -balance economy In order to encourage more domestic demand, the need that became more acute after the start of slowing deep property sectors four years ago.
About 80 global major managers are visiting Beijing this week on the annual business forum and A potential meeting with President XI Jinpingwhere they are expected to increase Chinese reliance on exports and investments, not consumption and services, for growth.
Chinese trade surplus hit A record of nearly $ 1 Last year, and deflamation pressures overcame the competitiveness of his goods, which led to the exacerbation of trade tensions with the USA and the EU, as the great developing countries.
Beijing has tried to increase domestic consumption with trade schemes in recent years, but economists have criticized programs as if they mostly help manufacturers to sell goods instead of increasing consumer consumer consumption, and therefore failed to balance the economy.
“The persistent concern for this program was that it was just withdrawing demand, not a sustainable starting of greater consumption,” said Chris Beddor, Deputy Chinese Director for Research at Delekal.
The IMF described the Chinese sector of services as “insufficiently used”, noting that last year it made 50 percent of the value of value in economics, compared to about 75 percent for advanced countries.
A Chinese academic who was familiar with the question said that the Creators of Politics in Beijing responded positively to proposals to include services in the consumption subsidy program.
“They said they would consider it,” said the academic, who refused to be identified because he was not authorized to publicly comment on official policy.
Some local self -governments have already introduced subsidies for consumption for cultural and tourism activities, but such a program does not exist at the national level, said the Academician. But decision -making is likely to be slow and the introduction of any scheme would be gradually, they added.
The Chinese Ministry of Finance did not respond to the request for comment on the subsidy program.
Beijing has turned in the attitude oriented for consumption in recent months. Prime Minister Li Qiang, a Chinese second -ranked official, emphasized domestic demand at an annual meeting in the parliamentary tire in the country this month.
The government is also published a draft To raise consumption, which included initiatives ranging from the subsidy system for children’s concern until the introduction of spring interruptions for schools.
Consumption was expected to be a topic of discussion among the main executives gathered in Beijing this week for the annual Chinese development forum, which was concluded on Monday.
But in one sign that consumption is yet to be overtaken by the focus of Beijing on production, the agenda for the forum seen by the FT showed that the meeting would start with sessions on “New quality productive forces–Eufemism for high-tech chains of production and supply.
“Increasing consumption” will be discussed at the end of the forum, in one session, the agenda states.
