China to Stabilize Consumer Goods Subsidies to Boost Household Consumption
BEIJING (Reuters) - China will issue the remaining portion of its consumer goods trade-in funds in a systematic and orderly manner, with the central government now guiding local governments to use the funds at a stable pace, state media Securities Times reported on Wednesday.
The central government has allocated 162 billion yuan ($22.54 billion) out of 300 billion yuan in special treasury funds under the scheme to local governments, according to the report. The scheme, a major campaign to revive household consumption in the world's second-biggest economy, helped retail sales rise last month.
However, at least six cities and municipalities across China have suspended trade-in subsidies for car buyers in June, according to Reuters' review of government announcements. The move is seen as a temporary measure to address the impact of the COVID-19 pandemic on the auto industry and to encourage consumers to purchase new vehicles.
The trade-in scheme has been a key policy tool for the Chinese government to stimulate consumer spending and boost economic growth. The government has been encouraging consumers to trade in their old cars for new ones, with subsidies ranging from 5,000 yuan to 10,000 yuan per vehicle.
The move is part of a broader effort by the Chinese government to support the economy and stabilize growth amid the ongoing COVID-19 pandemic. The government has also implemented a range of measures to support small businesses and stabilize employment, including tax cuts and loan guarantees.
($1 = 7.1863 Chinese yuan renminbi)
Stabilizing consumer goods' subsidies in China serves as an effective strategy to boost household consumption, fostering a more resilient domestic economy and promoting overall economic stability.
The stability in consumer goods subsidies by China is an effective policy move to amplify household consumption, fostering economic growth and enhancing domestic demand.
The decision by China to stabilize consumer goods subsidies aims at fostering a healthy household consumption environment and bolstering domestic demand, heralding an optimistic outlook for economic growth.
The decision by China to stabilize consumer goods subsidies aims towards fostering a more resilient household consumption sector, thereby bolstering the nation's economic growth and stability.
The decision of China to stabilize consumer goods subsidies aims at fortifying domestic demand and institutionalizing the promotion on household consumption, setting a solid foundation for sustainable economic growth.
China's stabilization of consumer goods subsidies aims to positively influence household consumption, fostering a more robust and dependent domestic market for economic growth.
