China plans to boost domestic consumption

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China plans to boost domestic consumption

20-03-2025 14:25

China plans to boost domestic consumption

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China plans to boost domestic consumption

China’s authorities are ready to boost domestic consumption to support the economy. A bold move!

On March 16, the Chinese government introduced a new document, "Special Action Plan to Boost Consumption." Experts believe this initiative aims to strengthen domestic demand.

The General Office of the Central Committee, which operates under China’s ruling party, stated that the plan focuses on actively encouraging consumption, expanding internal demand, and unlocking consumer potential by increasing incomes.

The document outlines multiple measures, including stabilizing the stock market and developing a wide range of bond products for individual investors.

Earlier, Premier Li Qiang presented the annual government report, highlighting consumer stimulus as the top priority for 2025.

Right now, China is dealing with consumption stagnation. In February, the Consumer Price Index (CPI) recorded its sharpest annual decline, while the Producer Price Index (PPI) has remained in negative territory since October 2022.

The new government plan also includes support for inbound and domestic tourism. Expectations are high that unilateral visa-free agreements will expand, and regional entry policies will be optimized.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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