China to Further Stimulate Domestic Consumption

On 24 April, the Ministry of Commerce issued its guiding opinions on making co-ordinated effort to advance key tasks in promoting domestic consumption. The following are some of these tasks:

• Promote resumption of work and commercial activities: In cities and counties of low-risk regions, efforts will be made to promote the full resumption of normal operation in all kinds of shopping malls and markets and domestic services.

• Solve problems facing work resumption: “One-stop service platforms” involving multiple departments will be established to help resolve problems such as shortage of working capital and high rent facing businesses and promote the co-ordinated resumption of work in upstream and downstream industries, production, supply and marketing entities and large, medium-sized and small enterprises.

• Improve networks for the convenient consumption of daily necessities: Improvements are to be made to the layout of convenience stores and wet markets, and “15-minute living circles” will be created through the development of convenience store chains.

• Enhance the impact of tax exemption and refund policies: The establishment of stores offering instant tax refund to departing travellers will be encouraged.

• Boost the consumption of automobiles: Measures such as offering subsidies and preferential tax policies for the purchase of new-energy vehicles and reducing value-added tax on the sale of used vehicles will be extended.

• Promote the consumption of home appliances: Where conditions permit, policies combining incentives with subsidies will be adopted in the light of actual conditions for the replacement and upgrade of home appliances.

Source: Ministry of Commerce