(Bloomberg) — China’s government on Saturday unveiled its priorities to boost consumer spending as weak domestic demand continues to weigh on growth.
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The State Council, China’s cabinet, has identified 20 key steps, including exploring the possibilities of expanding basic consumption in sectors such as catering, home services and elderly care, according to a statement on the central government’s website.
Authorities also want to encourage new forms of spending, create unmanned stores and self-collection lockers, and support the development of electronic sports competitions and live streaming e-commerce.
China’s ruling Communist Party pledged in July to make boosting consumption a greater focus during a twice-a-decade plenary congress on long-term reforms.
The country’s economic growth unexpectedly slowed to its worst pace in five quarters, according to data released in July, as faltering consumer spending undermined a boom in exports, prompting calls for policymakers to unleash government support to help Beijing meet its annual growth target of around 5% by 2024.
Under the framework announced on Saturday, the government will increase financial support to eligible small and micro enterprises in the service sector and introduce additional income tax deductions to offset the costs of caring for babies and children under three years old, as well as spending on education and support for the elderly.
Beijing also plans to boost the development of new tourist areas, including cruise ships, yachts and low-altitude flying.
According to the statement, the authorities will increase credit support for key service sectors and expand the supply of financial products that meet the development needs of new consumer forms, such as the sharing economy.
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