China on Sunday unveiled an action plan it hopes will help Beijing to overcome stubbornly low consumer demand and meet its ambitious growth target, state news agency Xinhua reported.
The plan, issued by the State Council, promises “special initiatives” to stimulate the world’s second-largest economy, which has struggled to sustain a strong recovery since the Covid-19 pandemic.
For all latest news, follow The Daily Star’s Google News channel. Beijing faces further headwinds with the return of US President Donald Trump, who has slapped punitive tariffs on a range of Chinese products as part of an ongoing trade war.
The plan, organised into eight sections, “aims to promote reasonable wage growth by strengthening employment support in response to economic conditions”, Xinhua reported.
It intends to grow incomes through property reform, including in rural areas where it calls for “exploring ways to unlock the values of houses legally owned by farmers”, it added.
Mechanisms for stabilising the stock market and the development of financial products for individual investors are also being explored.
Financial institutions will be encouraged to issue more personal consumption loans and set reasonable loan limits, terms and interest rates, Xinhua said.
The plan also mentions linking consumer consumption to broader social goals, and potentially raising pension benefits.
China will consider establishing a childcare subsidy system, and ensure workers’ rights to rest and vacation are legally protected, Xinhua reported.
Beijing is pushing for economic growth of around five percent this year, Premier Li Qiang announced at the opening session of the National People’s Congress (NPC) earlier this month.
The new plan is part of China’s drive to make domestic demand the main engine and anchor of its economic growth.