China's statistics bureau: China's consumer spending power needs improvement and internal consumption momentum requires strengthening

China's statistics bureau: China's consumer spending power needs improvement and internal consumption momentum requires strengthening

In a bid to bolster consumer spending and stimulate economic growth, China has implemented several measures to support service consumption. The Ministry of Finance (MOF) has announced interest subsidies for businesses in eight consumer service sectors, including catering and tourism, to reduce financing costs and boost the consumer market [1]. This initiative aims to support service industry operators by offering an interest subsidy of one percentage point on loans from 21 national banks and nine government departments, with the central and provincial governments bearing 90% and 10% of the subsidy costs, respectively.

Additionally, financial regulators have announced interest subsidies for individuals taking out consumer loans, further reducing borrowing costs and encouraging consumer spending. These measures are part of China's broader strategy to enhance internal consumption momentum and improve consumer spending power.

July's price data from China's National Bureau of Statistics indicates a steady recovery in the domestic economy. The Consumer Price Index (CPI) rose by 0.4% month-on-month and remained flat year-on-year, with core CPI increasing by 0.8% year-on-year. The rebound in service consumption, driven by events such as the "Summer in Shanghai" international shopping season, has significantly contributed to the CPI increase [2]. This signals a positive trend in consumer demand and highlights the importance of China's role in expanding domestic demand and driving global economic recovery.

Looking ahead, China's efforts to expand domestic demand and enhance consumer spending power are poised to sustain domestic recovery and inject fresh vitality into global economic growth. With the ongoing implementation of policies to boost domestic demand and the advancement of high-level opening-up, China's market is set to unleash even greater potential and play an increasingly active role in driving global economic growth and fostering win-win international cooperation.

References:
[1] https://www.tradingview.com/news/te_news:477275:0-china-offers-interest-subsidies-for-loans-to-boost-consumption/
[2] https://www.digitaljournal.com/pr/news/binary-news-network/july-price-data-potential-china-s-198608727.html