China implements 19 initiatives aimed at stimulating consumer spending
Boosting Service Consumption: A Comprehensive Push by China's Authorities
China is making a renewed push to boost service consumption, with a focus on high-quality creative works, mid- to high-end medical care, and sports activities. The Ministry of Commerce, along with nine other departments, has released a 19-point set of guidelines to facilitate this push.
The guidelines propose several measures to expand the service sector. These include strengthening fiscal support and investments, reducing red tape, and attracting foreign and private investment. Local governments are also being supported to host mass sports activities, and more international sports events will be introduced.
To encourage consumption, authorities are encouraging financial institutions to provide interest rate subsidies on personal consumer loans in key areas. However, the available sources do not specify which financial institutions are required to grant higher consumer loans to companies in the service sector, nor does it detail the areas where interest subsidies on personal consumer loans should be applied.
In an effort to attract more foreign visitors, measures are proposed to expand visa-free access. Additionally, adjustments to schools' holiday schedules are being explored to allow more time for travel and other activities.
The push also includes relaxing market access and increasing supply across sectors such as culture, sports, and healthcare. Operating hours of popular museums and other scenic sites will be extended to cater to increased demand.
Furthermore, China has pledged to further open up the culture industry, with a focus on high-quality creative works and productions. This move is expected to boost the industry's growth and attract more investment.
In summary, China's authorities are taking a multi-faceted approach to boost service consumption, with a focus on reducing red tape, attracting investment, and encouraging consumption through interest rate subsidies and visa-free access. The push also includes opening up the culture industry and extending the operating hours of popular tourist destinations.
