The Chinese government plans to launch a massive “consumption promotion” campaign in May to boost the market’s recovery and speed up the so-called “internal circulation,” according to a comprehensive report.
According to the official Chinese news agency China News Service, since 2012, the annual “consumption promotion month” is usually launched in the second half of the year, but this year it was brought forward to the first half of the year, probably related to the fact that the current consumption has not yet recovered to the situation before the outbreak of the new Guan (Chinese communist virus).
Chinese Ministry of Commerce spokesman Gao Feng also said at a press conference on April 25 that the first “China International Consumer Goods Fair” will be held this year. Zhu Xiaoliang, director of consumption promotion at the Chinese Ministry of Commerce, also said that this year’s consumption promotion activities will focus more on the benefits of the people and real discounts.
But on the other hand, many factors are hindering the Chinese people’s consumption. China’s central bank said last week that the leverage ratio (debt) of residents reached 72.5%, up 7.4% year-on-year, the highest rise in the world and far more than developed economies such as the United States and Germany.
As China’s economy has declined and housing prices have risen in recent years, the leverage ratio of Chinese residents may go further, which will have a dampening effect on consumption.
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