China reveals the “vigorously enlarge” plan

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China has announced the plan of revival of domestic consumption as government President Xi Jinping to abolish weak confidence and deflationary pressure in the second largest economy in the world.

According to Xinhua, China’s State News Agency, the government “vigorously increases consumption” and “expand the demand for domestic Going to Supporting Demand After a sustainable jolt to enhance industry.

Plan of the State Council, ChinaThe Cabinet of Ministers will focus on raising revenue, real estate stabilization and stock markets, as well as improving medical and pension services, although politicians have presented some details of financial costs at Beijing’s briefing on Monday afternoon.

Briefing is largely repeated figures published in the annual budget last week during Meetings “Two Sessions”Where legislators resumed consumption as a major priority.

The Hong Kong Seng Seng Seng Index increased by 0.8 percent, while Brent CRUD futures, an international oil benchmark, increased by 0.6 percent to $ 71 per barrel. Morale turned into a positive During the year, 0.2 percent closed on Monday’s consumption briefing.

Internal costs in China have been weak from the end of the Covid-19 lock more than two years ago, when households carried out caution about costs. Consumer prices have fallen into deflation In February, although the new New Year’s lunar holiday affected.

The slowdown in the huge real estate sector in China, partly conditioned by the official excretory movement and now in the fourth year, also rethinking calls from economists to strengthen domestic demand.

The National Bureau of Statistics on Monday showed that retail sales rose by 4 percent in January and February a year before December increased by 3.7 percent and according to the Reuters analysts. The average new housing prices decreased monthly per month.

Policies last September submitted a long -awaited package support the economy, but the measures were largely focused on stock markets.

The new consumption plan includes the obligation to increase the minimum wage, strengthen education support and creation of the childcare subsidy system, the urgent problem, since China’s population has decreased for three consecutive years.

Lynn Song, the chief economist of the Great China, said the “significant attention is paid to the increase and the willingness of households to consume” and can “help the economic transition of China to the growth model caused by consumption.”

The data published on Monday also showed that industrial production increased by 5.9 percent a year in the first two months of 2025, slowing from 6.2 percent in December, but beating analysts’ expectations by 5.3 percent.

The new package will also promote “incoming” consumption. Last year, Beijing continued free visa trips to revive foreign tourism after a pandemic.

He also highlighted sectors such as “snow and ice”. In recent years, China has built several closed ski resorts, including the world’s largest in Shanghai, which opened in September.

SUGGANG, Senior Research Fellow of the University of Stanford University and China University, said Beijing’s turn had given official recognition that the economic situation was “serious”.

But politicians still fought for taking specific steps to stimulate demand, he added.

“If we look at publicly announced politics. “Although, on the one hand, they admit that something is wrong… They still emphasize more on the power side.”

An additional report by William Sandlund in Hong Kong