The Chinese government’s 5.5% economic growth target is quite ambitious when its “zero covid” epidemic prevention policy hurts the economy. So the central government launched many packages to encourage consumption to revitalize the economy.
China News reported on June 3 that in the first quarter, China’s consumer spending contributed 69.4% to economic growth. Besides that, China has a super-large market with a population of 1.4 billion; so there is huge room for consumption growth.
However, consumption has dropped sharply this year because of the pandemic. Data from the Bureau of Statistics showed that total consumption in April fell by 11.1% year-on-year.
China Premier Li Keqiang convened a meeting on May 25 with 100,000 government officials, telling them to focus on stabilizing the economy. One day after the meeting, an inspection team from the State Council reportedly visited more than ten provinces to promote the implementation of relevant policies.
According to Chinanews, local governments have also intensively put forward measures to promote consumption through financial subsidies, issuing consumer coupons to encourage people to buy cars, household appliances, and so on.
However, many people said they didn’t see the money or consumption coupons. Even if the government issued those things, they hadn’t money to spend.
Mr. Xu, a Weihai citizen, Shandong, told NewTang Dynasty TV: Now the people can’t earn money, so it’s meaningless to do anything else. Millions of people are unemployed. He said that he is not going to buy anything. He just wants to be able to live.