Investing.com-- China has launched a comprehensive plan to stimulate domestic consumption as part of efforts to drive economic growth, the State Council said in a report on Sunday.
The plan aims to strengthen consumer demand by increasing incomes, reducing financial burdens, and improving the consumption environment, the report stated.
The initiative targets both traditional sectors such as housing and automobiles and emerging areas like AI-powered products, autonomous driving, and 3D printing. It also includes measures to support wage growth, expand investment options, and enhance elderly care and childcare policies.
Efforts will be made to unlock the value of rural housing through rental and equity models, while financial institutions are encouraged to expand personal consumption loans under controlled risk conditions, the State Council’s report said.
"China will expand property income channels through measures to stabilize the stock market and develop more bond products suitable for individual investors," the State Council said in the report.
China has been grappling with sluggish consumer spending since the COVID-19 pandemic. Despite reopening efforts, weak wage growth, high youth unemployment, and a lack of confidence in the job market have stifled domestic consumption.
Deflationary pressures have further weighed on consumer and business confidence, prompting Beijing to roll out stimulus measures, including interest rate cuts and fiscal support. However, these efforts have faced headwinds from geopolitical tensions, including renewed U.S. trade policies under President Donald Trump.
China’s plan also promotes inbound tourism by easing visa policies and seeks to turn ice- and snow-rich regions into international winter tourism hubs.
The council called for collective efforts from all sectors to fully implement the action plan and ensure its effectiveness.