China announced a plan to promote domestic consumption

China on Sunday announced “Special Action Plan to promote consumption” in a bid to increase domestic consumption in the world’s second largest economy.

The general office of the Central Committee, directly under the ruling party of China, said that according to strict consumption of the scheme, expanding domestic demand, and “an increase in income and reducing the burden, and a Google translation of the report,” plans to increase consumption capacity.

Extensive release also underlined other stages, such as “several measures” to stabilize the stock market and develop more bond products suitable for individual investors.

China’s CSI 300 index and Hong Kong Hang Seng Index It was slightly above Monday, recorded a profit of about 0.1%.

It provides an annual report on government work a week after China’s premiere Lee Kiang which promoted consumption as top tasks for the year.

Subsequently, the Chinese policy makers accepted the need to faster the unholy pressure at the house.

China is currently facing a dull consumer landscape, with the most recent consumer price index in February since October 2022, a year and manufacturer price index has recorded its biggest decline in one year.

The scheme announced on Sunday also asked for support to promote inbounds and domestic tourism, which was planned to be given to snow and snow areas to help them develop globally recognized winter tourist destinations. Unilateral visa-free arrangements will be expanded and regional entry policies will be adapted.

While in the plan “nothing new seems new, it is to set it as signs of an action plan that will follow solid steps at the local level.” Lynn Geet said, the Chief Economist of ING for Greater China told CNBC.

More importantly, he said that the plan shows China commitment Addressing long -term structural issues such as recession of wages, negative money effects from property and stock markets and inadequate social security trap.

The scheme asks for work to continue to implement both urban and rural residents, as well as farmers,, such as employment assistance schemes and unemployment insurance policy.

The song said, “These are multi-year instructions rather than something that can be fixed in a few months. Directly, it is quite encouraging that policy makers are taking a quiet look at these subjects, and it should help in long transitions for a consumption-powered economy.”

I would be willing to use Rome, instead it was not made in a day’s dialect. What do you think?

“As they say, Rome was not built in a day – neither was Bide And many major policy directions of China’s EV dominance-China takes time to bear the fruits, and the document plants seeds for the long-term development of the consumer industry, “the song said.

Back in March, Chinese policy makers stated that China should focus more on domestic demand in view of the possibility of “new shocks” for foreign demand, according to Shane Danang, head of the draft group of Government Work Report and director of the State Council Research Office.

Chinese leaders also promised an annual parliamentary meeting at an annual parliamentary meeting in January for subsidy support of consumers for subsidy support of consumers.

Richard Harris, the chief executive of the investment management firm Port Shelter Investment Management, told CNBC’s “Squock Box Asia” that Chinese authorities would actually focus on fixing the domestic economy.

Harris said, “authorities are determined to stimulate the economy, determined to continue, and even if we look at some issues with the export side of the economy, they are firm to achieve the domestic economy. Because they have,” Harris said.

– Anik Bao of CNBC contributed to this report.