China explores services subsidy to boost weak domestic demand

China is considering including services in a subsidy programme to boost consumption, in addition to existing trade-in schemes for goods, as the economy struggles with weak domestic demand. With a record trade surplus and deflationary pressures, policymakers are looking to rebalance the economy towards more sustainable consumption. Despite concerns about pulling forward demand, efforts to stimulate consumption through services may be gradually introduced at both national and local levels.

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