China Implements 20 Strategies to Boost Domestic Consumption Amid Economic Slowdown in Second Quarter

In light of the slowing economic growth in the second quarter of the year, Chinese authorities have been considering measures to stimulate consumer spending. Both China and the International Monetary Fund (IMF) have pointed out that without such measures, the country's economic situation could worsen.

To address these concerns, China has proposed 20 steps aimed at stimulating domestic consumer spending. The list of these measures was published on the government's website and highlighted by Bloomberg.

According to data released in July, the country's economic growth has slowed to its lowest pace in five quarters. From April to June, the Chinese economy grew by 4.7% — the lowest figure since early 2023. In the previous quarter, the growth rate was 5.3%. Due to this slowdown, there is a risk that China may not reach its planned growth target of around 5% in 2024.

Among the measures proposed by Chinese authorities are:

• Improving the Quality of Public Catering Services: Enhancing the standards and quality of services provided by the public catering industry to encourage more consumer spending in this sector.
• Developing Consumption in Culture and Tourism: Promoting cultural and tourism-related activities to boost spending in these areas. This includes supporting cultural events, festivals, and promoting tourism destinations within the country.
• Popularizing Sports and Creating New Sports Facilities: Encouraging the public to participate in sports by building new sports facilities and organizing sports events. This initiative aims to increase spending on sports-related activities and equipment.
• Supporting Educational Institutions to Meet Society's Educational Needs: Providing support to educational institutions to ensure they can meet the growing educational demands of society. This includes investments in infrastructure, teaching materials, and technological advancements in education.
• Developing Digital Services: Promoting the growth of digital services to cater to the evolving needs of consumers. This includes improving internet infrastructure, supporting e-commerce platforms, and encouraging the development of new digital services.

These measures reflect China's commitment to boosting domestic consumption as a means to counteract the economic slowdown. By focusing on sectors such as public catering, culture and tourism, sports, education, and digital services, the government aims to create a more robust and resilient economy.

In the face of these economic challenges, the Chinese government remains determined to stimulate growth and ensure the well-being of its citizens. The proposed measures are designed to not only address the immediate economic slowdown but also to lay the foundation for long-term economic stability and growth.