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China’s economic growth slowed unexpectedly to its worst pace in five quarters in July, as weak consumer spending offset a surge in exports. This prompted calls for policymakers to implement government support to achieve Beijing’s 2024 growth target of around 5%. read more
 "China unveils measures to boost consumer spending amid weak domestic demand")
The plan also includes support measures for China’s new urban residents in areas such as education and housing, increasing central fiscal support for affordable rental housing, and upgrading urban infrastructure. Representational Image- FP
China’s government launched strategy to stimulate consumer spending on Saturday, as sluggish domestic demand continues to hinder economic growth.
The State Council outlined 20 key measures, including expanding basic consumption in sectors such as catering, home services and elder care, according to a statement posted on the central government’s website.
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In July, the ruling Communist Party pledged to prioritise boosting consumption at a twice-a-decade plenum on long-term reforms. Economic growth had unexpectedly slowed to the worst pace in five quarters, according to data released in July, with weak consumer spending undermining a boom in exports. This slowdown prompted calls for government support to help Beijing achieve its annual growth target of about 5% for 2024.
The new framework includes enhanced financing for small and micro enterprises in the service sector and additional tax deductions for childcare, education, and elderly support expenses.
On Wednesday, the State Council released a five-year urbanization plan, easing restrictions on household registrations in major cities and increasing housing support for new urban residents to accelerate urbanization and boost domestic demand.
The State Council outlined a five-year action plan for urbanisation on Wednesday, which aims to relax household registration restrictions in major cities and increase housing support for new urban residents. The plan is part of broader efforts to accelerate urbanization and boost domestic demand.
The action plan targets increasing the urbanization rate of the permanent population to nearly 70% within five years to better support high-quality economic and social development.
Major measures include lifting household registration restrictions in cities with permanent urban populations of fewer than 3 million and comprehensively relaxing these requirements in cities with populations between 3 million and 5 million.
The plan also includes support measures for new urban residents in areas such as education and housing, increasing central fiscal support for affordable rental housing, and upgrading urban infrastructure.
Experts highlighted the significance of this action plan, noting that accelerating urbanisation, expanding domestic demand, and improving livelihoods are crucial for economic growth.
Boosting domestic demand is now a top priority as China seeks to stimulate economic growth. On Tuesday, the State Council called for significant breakthroughs in expanding domestic demand, emerging industries, and high-level opening-up.
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English (US) ·