China enhances consumption through fresh stimulus efforts, targets services sector expansion
China has emphasized its dedication to enhancing consumption as a vital engine of economic growth. Policymakers have introduced initiatives aimed at increasing domestic demand and improving investment efficiency, as detailed in a government work report presented to the national legislature for consideration on Wednesday.
TroibNews 
China has reaffirmed its commitment to strengthening consumption as a vital engine for economic growth, with policymakers announcing new measures designed to boost domestic demand and enhance investment efficiency, according to a government work report presented for discussion to the national legislature on Wednesday.
The annual report underscored the plan to issue 300 billion yuan worth of ultra-long-term special bonds to support a nationwide consumer goods trade-in initiative.
Li Yunze, head of the National Financial Regulatory Administration, addressed reporters following the opening session of the third meeting of the 14th National People's Congress, stating that financial institutions would be encouraged to develop financial products that cater to diverse consumer needs. Furthermore, Chinese officials are exploring methods to increase credit limits and extend loan durations for long-term, high-value purchases.
Beijing is also advocating for greater access and fewer restrictions in key sectors such as healthcare, elderly care, childcare, and domestic services to promote multifaceted consumption growth.
"China's strategy in recent years has focused on expanding domestic demand. While boosting big-ticket purchases remains important, there is a growing emphasis on service consumption, which marks a significant shift," remarked Zeng Gang, director of the Institute for Urban Development at East China Normal University, in an interview with YICAI, a Shanghai-based business news outlet.
Moreover, Chinese authorities are looking to stimulate new consumption trends by nurturing digital, green, and smart consumer markets.
In 2024, as part of a set of stimulus measures, consumer spending in China continued to gain traction. Final consumption expenditure accounted for 44.5 percent of economic growth, contributing 2.2 percentage points to the country's GDP. Service consumption also saw substantial growth, with per capita spending on services reaching 13,016 yuan, an increase of 7.4 percent compared to 2023.
Camille Lefevre contributed to this report for TROIB News
The annual report underscored the plan to issue 300 billion yuan worth of ultra-long-term special bonds to support a nationwide consumer goods trade-in initiative.
Li Yunze, head of the National Financial Regulatory Administration, addressed reporters following the opening session of the third meeting of the 14th National People's Congress, stating that financial institutions would be encouraged to develop financial products that cater to diverse consumer needs. Furthermore, Chinese officials are exploring methods to increase credit limits and extend loan durations for long-term, high-value purchases.
Beijing is also advocating for greater access and fewer restrictions in key sectors such as healthcare, elderly care, childcare, and domestic services to promote multifaceted consumption growth.
"China's strategy in recent years has focused on expanding domestic demand. While boosting big-ticket purchases remains important, there is a growing emphasis on service consumption, which marks a significant shift," remarked Zeng Gang, director of the Institute for Urban Development at East China Normal University, in an interview with YICAI, a Shanghai-based business news outlet.
Moreover, Chinese authorities are looking to stimulate new consumption trends by nurturing digital, green, and smart consumer markets.
In 2024, as part of a set of stimulus measures, consumer spending in China continued to gain traction. Final consumption expenditure accounted for 44.5 percent of economic growth, contributing 2.2 percentage points to the country's GDP. Service consumption also saw substantial growth, with per capita spending on services reaching 13,016 yuan, an increase of 7.4 percent compared to 2023.
Camille Lefevre contributed to this report for TROIB News
