China Details Plans to Stimulate Consumer Spending
Chinese drivers who trade in older cars for newer models will be eligible for subsidies, as will rural households that buy insulation and other home renovation materials to improve energy efficiency. Entrance fees at scenic sites will be cut to promote tourism.
Those were a few of a long list of measures detailed on Monday by the Chinese government in an effort to stimulate consumer spending. Attempts by officials in Beijing to juice the economy have taken on greater urgency as it has become clear that the recovery is flagging.
Li Chunlin, vice chairman of the National Development and Reform Commission, acknowledged at a news conference that consumers are wary. “Some consumers lack confidence and have many concerns,” he said.
Real estate prices have tumbled, leaving many Chinese feeling poorer and less willing to spend. Youth unemployment reached 21.3 percent in June, leaving them and their nervous parents more cautious about spending. After two decades of brisk increases, wages have stagnated.
Source: The New York Times
