China vigorously boosts consumption to promote economic development

On January 18th, the website of the Spanish newspaper "El Mundo" published a report titled "Beijing launches a 'war' of discount coupons, continuing to boost the economy in 2025", written by journalist Lucas Delacar of the newspaper

According to the report, Ms. Yuan, who was in her twenties and traveling to Europe during her vacation, was pleasantly surprised to find that the app she used to purchase plane tickets gave her a 300 yuan discount coupon for consumption at an online supermarket on the platform

After using this money to purchase a new rice cooker, Ms. Yuan noticed that she had obtained another coupon on Taobao

The consumption boom in January swept this young lady, who spent a lot of time searching for new, cheap, and beautiful products on various shopping apps. She saw the most significant discounts on electric vehicles, with the government providing subsidies of up to 20000 RMB for purchasing new energy vehicles

According to reports, in China, the world's largest electric vehicle market, the average price of new energy vehicles will decrease by over 3300 euros in 2024

In addition to the electric vehicle discounts offered by local manufacturers, Ms. Yuan also noticed the unusual discounts on Apple phones. Apple's new phone offers exceed 70 euros, and the company is trying to cope with the increasingly fierce competition from Chinese smartphone brands

The reporter of the newspaper walked offline and strolled through several large shopping centers in the center of Shanghai. In the first few weeks of the new year, major luxury brands launched some new discounts in an attempt to re attract the interest of middle-class consumers who had previously purchased such products in large quantities

The last stop is at the newsstand, watching Chinese media report on the government's new plan to boost domestic consumption, such as upgrading the policy of exchanging old for new consumer goods by 2025, with subsidies up to 20%. Consumers can now replace household appliances such as televisions or dishwashers with new ones on many platforms and enjoy discounted prices. The Chinese government announced that the central government has allocated 81 billion yuan in funds for the trade in of consumer goods by 2025

On the 13th, the People's Bank of China announced a series of measures to stabilize the RMB exchange rate, such as increasing cross-border funding sources for enterprises and financial institutions

In addition, according to customs data, China's exports increased by 5.9% year-on-year in 2024, imports increased by 1.1%, and the trade surplus reached 992.1 billion US dollars

According to a report by World News Network on January 17th, in order to promote consumption, various regions in China will gradually implement subsidies for purchasing new digital products such as mobile phones. According to the relevant person in charge of the Chinese Ministry of Commerce, this wave of subsidies is not based on the exchange of old for new, nor on the premise of "handing over old", but can be directly paid at the time of purchase to deduct the subsidy fees. However, due to the high unit price, small size, and strong circulation of related digital products, consumers need to cooperate in information collection and product verification

On the evening of the 15th, the Circulation Development Department of the Ministry of Commerce of China released the "Implementation Plan for Subsidies for Purchasing New Mobile Phones, Tablets, and Smart Watches (Bracelets)" on its official website. Subsequently, on the afternoon of the 16th, a special press conference was held to introduce the relevant information on subsidies for purchasing new mobile phones, tablets, and smart watches, as well as the policy of exchanging old appliances for new ones

Li Jialu, Director of the Circulation Development Department of the Ministry of Commerce of China, stated that the subsidies for three types of digital products, including mobile phones, are for purchasing new products, not for exchanging old for new, and not based on the premise of "handing over old products". Consumers can enjoy instant discounts when purchasing mobile phones and other products, whether through online platforms or offline physical stores, and enjoy the benefits of subsidies in the first place

On January 18th, the website of Singapore's Straits Times reported that in the fourth quarter of 2024, thanks to strong exports and a series of measures, the Chinese economy grew at its fastest pace in over a year

According to official data released on January 17th, China's economic growth rate reached 5.4% from October to December last year, achieving the annual growth target of 5%

In fact, while the Chinese economy accelerated its growth in the fourth quarter, the government introduced a series of measures. These measures include reducing mortgage interest rates, lowering down payment ratios for homes, and launching a consumer goods trade in program that provides subsidies for specific goods such as cars and household appliances

Smart shoppers used the consumer subsidy program to purchase goods within the subsidy scope, driving a 3.7% increase in the total retail sales of consumer goods in December

According to reports, Chinese policy makers have made expanding domestic demand their top priority for 2025. China has allocated 81 billion yuan for the 2025 consumer goods trade in program, which will cover more products

The report states that the Chinese government has also promised to provide more financial support, including increasing pension and medical insurance subsidies to boost consumption