China proclaims plan to enhance domestic consumption

China has announced “Special action plan to enhance consumption“On Sunday, seeking to ensure domestic consumption in the second largest economy in the world.

The Central Committee, the office, directly in the ruling party of China, said the plan had to vigorously increase consumption, expand domestic demand and “increase the potential of consumption by increasing revenue and reduced load,” the Google report said.

A wide release also outlined other stages, such as taking “numerous measures” to stabilize the stock market and develop additional bonds suitable for individual investors.

Chinese CSI 300 and Hong Kong index Hang the Index On Monday, they were slightly increased, registering about 0.1%.

This happens a week after Chinese Prime Minister Lee Ten made an annual report on the government’s work, which called the consumption as the main task ahead.

Then, then, Chinese politicians are increasingly recognized as a need To withstand the deflation of the house.

Currently, China is facing a sluggish consumer landscape, with the last consumer price index in February registered its most steady fall and the manufacturer’s price index on October 2022.

The plan announced on Sunday also called for support to promote entrance and domestic tourism, while support is planned to be provided in the ICE and Snow to help them grow into globally recognized winter tourist destinations. Unilateral visa agreements will be expanded and the regional entry policy will be optimized.

While the plan does not seem to contain “anything too new, teaching this as signals of the action plan will follow specific stages at local levels.” Lin Song said, China’s chief economist told CNBC.

What is even more important, she said the plan shows China commitment to Solving long -term structural problems, such as slowing salary, a negative effect of wealth from ownership and stock markets, as well as insufficient social security network.

The plan requires action to increase income of both urban and rural residents, as well as farmers such as employment support plans and continue to implement unemployment insurance.

The song noted: “These are probably many years, not what can be corrected in a few months. Sent, it is completely encouraging that politicians view these topics, and it should help a longer transition to the consumption economy.”

I would be inclined to use Rome instead was not built on the day quote. What do you think?

“As they say, Rome was built in the day – no one was Bake And the dominance in China-in many basic Chinese directives to bring the time to transfer the fruit, and this document seeds seeds for long-term consumer industry development, “said Song.

Back in March, Chinese politicians said China should focus more on domestic demand, given the possibility of “new turmoil” abroad, according to Shana Danjan, head of the government’s work group and director of the State Council Research Service.

Chinese leaders also promised at an annual parliamentary session in January an additional 300 billion yuan (41.45 billion) ultra-long treasury bond to support consumer subsidies.

Richard Harris, Executive Director of the Port Port Shelter Management Investment CompanyA boxed box as Asia“The Chinese authorities should really focus on correction of the domestic economy.

“The authorities are determined to stimulate the economy, determined to continue it, and even when we see some problems with the export of the economy, they are determined to force the domestic economy. Because they must,” Harris added.

– Anniek Bao in CNBC contributed to this report.