Measures to Boost Auto and Electronics Consumption in China

by Warren Seah

China is taking steps to boost consumption in the auto and electronics sectors, as part of efforts to strengthen its economy. The National Development and Reform Commission, the country’s top economic planner, has announced several measures to encourage the purchase of cars and electronics.

Boosting Auto Purchases

To support the auto industry, the commission has called on local governments to implement measures that will increase car purchases. This includes raising the annual car purchase quotas, improving second-hand car transactions, and providing consumer credit support. Furthermore, the commission has expressed its commitment to supporting the public sector in purchasing more new-energy vehicles.

Stimulating Electronics Consumption

Similar stimulus measures have been introduced for the electronics sector. The government is urging companies to accelerate technological innovation, with the aim of encouraging consumers to replace and upgrade their devices more frequently. Additionally, local government subsidies for electronics and home appliance purchases in rural areas will be supported.

These measures come at a time when investors are anticipating additional policy stimulus from Beijing to boost economic growth. It is expected that officials will adopt a more proactive approach in the second half of the year, following disappointing GDP data for the second quarter.

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