When consumption slows, a sluggish economy follows suit.
As China battles economic slowdown, 10 government authorities unveiled 24 policy measures on Monday to help drive “stable growth of consumption” in 2019. The measures focus on boosting car consumption, increasing rural consumption and strengthening consumer protections.
The authorities placed boosting car consumption high on the list and introduced measures such as promoting car replacement, boosting the second-hand car market and improving subsidies on new energy vehicles.
A slump in car consumption was a major factor behind China’s slowing consumption growth in 2018, driving down 0.8 percentage points of the growth of retail sales of consumer goods overall, according to the National Bureau of Statistics and the National Development and Reform Commission.
Rural consumption is another key area where authorities vowed to work on, in particular by developing the tourism industry and e-commerce in the rural area.