HONG KONG (Reuters) -China unveiled a plan to boost consumption in the world’s second-largest economy, detailing measures that include promoting upgrades of consumer goods in rural areas and sectors such as “pet, anime and trendy toys.”
The measures were announced on Wednesday by China’s Commerce Ministry and several other ministries, its central bank, and its top market regulator.
Chinese leaders are signalling a sharper shift towards supporting consumption over the next five years as limited investment room and slowing exports have exposed vulnerabilities.
Authorities in October said they would increase the proportion of government investment for people’s livelihood and raise the percentage of household consumption of GDP “significantly” over the next five years.
“We will coordinate the expansion of domestic demand and the deepening of supply-side structural reform,” the statement said, adding that by 2030 the “contribution rate of consumption to economic growth will steadily increase.”
It urged strengthening research and development for elderly and child-related products including footwear and clothing, as well as “interest based consumption products” such as pets, trendy clothes and toys.
Authorities will also encourage the development of home service robots, smart home appliances and artificial intelligence products.
(Reporting by Farah Master and the Beijing newsroom; Editing by Tom Hogue and Shri Navaratnam)
