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Qingdao, China – January 8: Customers are looking at the electronics store amid the current nationwide subsidy program on January 8, 2025 in Kinddo, China’s Province Shondo.
Zhang In | Visual China Group | Gets the image
Beijing is the last step of China to raise consumption is not intended to throw away all kinds of costs.
This year, the policy has doubled subsidies for consumer programs to $ 300 billion last week ($ 41.47 billion), complying with market expectations-and again allocating cash materials. Subsidies will go up to about 15% to 20% of the purchase price for selected products, including middle -level smartphones and home appliances.
This is an extension from Last year 150 billion yuanannounced in the summer, for a narrower range of products.
The new round of subsidies is “quite significant” and will probably support retail sales, similar to how e -commerce companies saw an increase in sales in certain products late last year, CNBC Jacob Cook, co -founder and CEO of WPIC Marketing + Technologies said on Monday.
Although there is skepticism that the impact of a one -time subsidy will not last long, Cook said more subsidies are likely to be. He added that “aggressive” China “aggressive” Purpose 5% GDP growth And consumption priorities show that Beijing will make more to support growth – without relying on the old infrastructure play.
Last week Chinese Prime Minister Lee Ten Taked out an annual government’s work report This called an increase in consumption of the main task for a year ahead.
This is for the first time in a decade when Beijing gave consumption of such a high priority, said Laura van, China’s chief strategist in Stanley. She added that the government’s report referred to the “consumption” 27 times – most of the mention in ten years.
While Beijing did not follow the US or other countries, giving away cash consumers, Chinese politicians have increasingly recognized the need to withstand the deflationary pressure at home.
China should focus more on domestic demand, given the possibility of “new upheaval” abroad, Shan Danyan, head of the state -owned work report department and the director of the State Council, reported to reporters on Wednesday in Mandarin translated by CNBC.
China Last year’s retail sales increased by 3.5%A sharp slowdown with 7.2% growth in the previous year. In a constant fall in demand, Chinese Inflation consumer prices in February dropped below zero For the first time in a year, according to official data published on Sunday.
If the prices are too low, it is difficult to stimulate business to invest and increase consumers’ profits, Chen Changsheng, member of the government work group and the deputy director of the State Council, said at the same press conference on Wednesday.
He noted that the work report requires four tasks to solve the oppressed prices: expanding financial support, working on consuming, using regulation to prevent valuable wars and more efforts to stabilize real estate prices.
Real estate takes into account most household wealth in China. As a result of the impact on the real estate market in 2020, it caused a recession that began to turn only at the end of last year-after-call to high-level policies in September stop reducing the real estate sector.
Real estate stabilization can have a significant impact on the increase in consumption, similar to the impact of wealth from growth on the stock market, said Maine Lei, China’s strategy analyst at UBS Securities, noting the expectations that the market of mainland China has become more strategically important.
Reserves have been rallied after Chinese alerts in recent months.
300 billion yuan for subsidies comes from increasing over long special government bonds in 2025. China stated that last week it is so Increased deficit up to 4% Because it pursues an “active fiscal policy”.
New York, New York -September 19: The Chinese flag flies outside the New York Stock Exchange during the initial proposal (IPO) for Alibaba Group on September 19, 2014 in New York. The New York Times reported yesterday that Alibaba had raised $ 21.8 billion in its original public proposal.
Andrew Burton | News Getty Images
Also, mood assistance is a signs that Beijing seems to be transformed into a more convenient business. Chinese President Xi Jinping held a rare meeting with entrepreneurs Last month.
Once the businesses are more confident, they can hire more and increase salaries. Last week, a high-level Chinese Prime Minister promised more efforts to promote residents’ income and facilitate financial loads on low-income groups.
Officials have promised more support for the care of the elderly, children and a wide health care system, steps that are seen critically to strengthen the country’s security network, which allows residents to feel comfortable more.
To a certain extent, these measures can help reduce life costs and release potential consumption, said Mr. Hajan, a macro -currency analyst at Nanhua Futures.
A gradual turn
Economists have long called for Structural Repeated Revenue Calibration The system and policies that see the necessary to stimulate internal consumption are largely.
The latest promises indicate that “doors (IS) is open” but still “a very gradual movement of the leadership to make more direct support for consumption,” said Michael Girson, an employee of the Chinese analysis Center asian society.
“We are not really there yet in terms of a very strong push,” he added.
Before the addition of additional support, the underdeveloped social security network, the gloomy job market and low wages pushed households to save rather than spend, Girson said.
Costs on Home Accounts less than 40% China’s GDPsignificantly lower than an international average of approximately 60%, According to the organization of economic cooperation and development.
Evs, movies, tourism
The view of the implementation plan published on Wednesday, from the National Development and Reform Commission, shows how China is thinking about raising consumption.
The part that describes the tasks for 2025 begins with a whole section on improving consumption and investment. The report requires an effort to “increase the cost of expenses” and encourage the development of products and scripts that would encourage consumers to spend.
But this is not a call to maintain all kinds of purchases.
The report said in the report, the retail sale of “big tickets”. China also said it would reduce real estate and car shopping restrictions.
Part of the plan includes the development of the economy of experience – exciting scenarios that combine films, video games, tourism and traditional Chinese culture – similar to a splash of tourists, to historical monuments related to the hit -game last year “Black Myth: Wukong”.
Beijing, China – January 15: People are queuing outside the Miniso store to buy goods that represent the characters from the game “Black Myth: Wukong” on January 15, 2025 in Beijing, China. January 15 Miniso and “Black Myth: Wukong”.
Yi Haifei | Chinese News Service Gets the image
The Chinese authorities also said they would improve “regular payment mechanisms” together with a payment system for rest. Chinese staff usually receive less than 10 paid days, and several public holidays include the days that need to be made by working on the weekend.
The report also discussed the continuation of the Subsidation Plan of Consumer Good Trade Institutions and the modernization of the equipment.
But the two parts of the subsection were more focused on the development-development of talent, infrastructure and environmental projects-also the building potential in major research for technological innovation and household food.
In the near future, China will release a more detailed plan for promoting, Zheng Shendzh, head of the national and reform commission, reported to reporters on Thursday.
Preliminary data show that increasing sales from the initial 81 billion yuan China in consumption subsidies announced in January before the parliamentary meeting this month.
Retail sales of new energy vehicles for which buyers use Trade subsidies up to 15,000 yuanIn February, almost 80% to 686,000 units grew than a year earlier, Data from the Chinese Automobile Authority showed on Monday.
Selling smartphones for the week of January 20 to January 26 grew by almost 65% for the year More than 9.5 million units “and supported a high level in the following weeks,” the ControfPoint Research report said in late February.
The analysis said that subsidies are likely to encourage Chinese consumers to replace their smartphones before planned, especially when artificial intelligence features gain fame. The firm estimates the subsidy in the first quarter, which has received at least two or three points of additional growth this year on sale of smartphones in China.
