Chinese finance ministry official: will accelerate introduction of new policies to boost consumption

Chinese finance ministry official: will accelerate introduction of new policies to boost consumption

In a move to bolster domestic consumption and address the financial strain on its aging population, the Chinese government is set to introduce new policies aimed at supporting elderly-care services. According to a joint statement issued by the Ministry of Civil Affairs and the Ministry of Finance, monthly electronic coupons will be provided to seniors who are moderately, severely, or completely disabled, covering part of the costs for services such as meal and bathing assistance, rehabilitation, and day care [1].

The initiative, which will initially run as a pilot in select cities before a nationwide rollout later this year, aims to ease the burden on families and encourage the adoption of senior care services. The allowances, set between 500 yuan and 800 yuan a month, are expected to foster new growth drivers and better align economic development with social welfare [1].

This announcement comes amidst broader efforts by the Chinese government to strengthen the service sector and boost domestic consumption. Minister of Commerce Wang Wentao has pledged to continue cutting red tape and attracting foreign investment to address the shortage of high-quality service supply, particularly in healthcare and elderly care, over the next five years [3].

Economists have called for policies to bolster the social safety net to tackle the aging population, high youth unemployment, and tepid domestic consumption. The measures are part of China's broader strategy to drive economic growth through domestic demand, given the uncertain environment for international trade [1, 3].

The introduction of these policies aligns with China's efforts to position itself as a global leader in the digital asset sector. OSL Group, China Hong Kong's first licensed virtual-asset trading platform, has secured $300 million in equity financing, indicating a significant investment in the digital asset market [4].

These developments suggest that China is taking proactive steps to address its demographic challenges and stimulate economic growth through targeted policies and investments.

References:
[1] https://www.cnbc.com/2025/07/24/china-plans-consumption-vouchers-for-seniors-to-ease-strain-on-its-aging-population.html
[2] https://www.marketscreener.com/news/diary-china-corporate-earnings-week-ahead-ce7c5fdadc8df42c
[3] https://www.scmp.com/economy/policy/article/3318779/china-pledges-more-consumption-incentives-service-service-sector
[4] https://www.ainvest.com/news/osl-group-secures-300m-equity-raise-50-acquisitions-30-expansion-20-operations-2507/