China’s State Council has unveiled a “special action plan” to boost domestic consumption, aiming to increase residents’ income and establish a childcare subsidy scheme. The plan comes as consumer demand in the country has been squeezed due to factors such as COVID-19 disruptions and a prolonged property slump.
The plan aims to improve consumption capacity by increasing income and reducing burdens, and is aimed at all regions and departments. It includes measures to increase urban and rural incomes, boost farmers’ incomes through housing reforms, and stabilize the stock market.
Other proposed measures include establishing a childcare subsidy system, implementing flexible employment, expanding tourism, and guaranteeing workers’ rights, including paid annual leave and short holidays. The plan also aims to increase financial subsidies for basic pensions and encourages community and employer-run childcare services.
Source: https://www.reuters.com/world/china/china-looks-boost-consumption-amid-consumer-squeeze-2025-03-16