China’s newly announced consumption action plan is the most comprehensive package of policies for boosting consumer spending that the country has released in over four decades, analysts said.
The 30-point plan, jointly released by top organs of the Chinese government and the ruling Communist Party, for the first time draws a direct link between consumption and issues such as access to affordable childcare and the country’s long-running property crisis.
“This is the most comprehensive directive on stimulating consumption since China’s reform and opening-up [in the late 1970s],” said Shi Lei, an economics professor at Shanghai’s Fudan University. “It is unprecedented as it wraps up everything that may influence spending in a professional way.”
Authorities will promote the “reasonable growth” of workers’ incomes by boosting employment, raising the minimum wage and stepping up enforcement of the paid annual leave system, according to the policy.
The plan also included measures to stabilise the stock and property markets.
Meanwhile, the directive outlined a crackdown on “unreasonable” business practices, such as the aggressive pricing strategies widely used in China’s live stream e-commerce market. It also broke new ground for a consumption-boosting policy by including efforts to promote service sectors including online gaming, esports and animation.
