China Boosts Residents’ Income to Stimulate Consumer Spending

BEIJING (Reuters) – China plans to boost residents’ income to support consumer spending, according to a cabinet meeting led by Premier Li Qiang, as reported by national broadcaster CCTV on Monday.

Chinese leaders have committed to a vigorous increase in consumption this year, aiming to stimulate domestic demand and counter a projected decline in exports, a crucial driver of growth anticipated to be affected by rising U.S. tariffs.

The cabinet emphasized the need to:
– Vigorously support income increases for residents
– Promote reasonable wage growth
– Broaden channels for property income
– Enhance consumption capacity

Additionally, there are plans to improve the quality and accessibility of service consumption across various social contexts. There were also discussions about expanding consumer goods trade-ins.

In January, China included more home appliances in its consumer trade-in program, offering subsidies for additional digital goods to revive demand in the sluggish household sector.

China aims to better address housing consumption needs and promote an “artificial intelligence plus consumption” model, as mentioned by CCTV.

Furthermore, the cabinet meeting highlighted the introduction of practical and effective measures to stabilize foreign investment, acknowledging the significant role of foreign-invested firms in job creation, export stability, and industrial upgrading.