Amidst economic slowdown and trade tensions, China launches an ambitious strategy to boost domestic demand as a new growth engine.
Strategy to Stimulate Consumption
The State Council of China has presented a large-scale plan to revitalize domestic consumption with aims to significantly improve the incomes of both urban and rural populations. The plan includes reforms in the housing sector to enhance financial resources for farmers and focuses on sustainable wage increases rather than temporary subsidies.
Response to External Economic Challenges
China's strategy is developed amid trade tensions with the West. New tariffs imposed by the US are already impacting Chinese exports, and the EU has also implemented significant tariffs on Chinese electric vehicles. China is turning to its domestic market to handle these pressures.
Financial Measures to Support Economy
The People's Bank of China has launched a medium-term lending operation of 300 billion yuan to support the banking system and maintain favorable liquidity conditions within the country.
Facing global economic challenges, China actively takes measures to sustain its economy, focusing on strengthening domestic demand as a key growth factor.
