China's $41 billion plan to boost consumption is just a start as deflationary pressures deepen

China recently doubled subsidies for a consumer trade-in program to 300 billion yuan, aimed at boosting consumption without resorting to cash handouts. The subsidies, covering 15% to 20% of select product purchases like smartphones and appliances, are expected to support retail sales and align with China’s 5% GDP growth target and focus on consumption over infrastructure spending. While some doubt the long-term impact of one-time subsidies, further programs are anticipated as Beijing looks to stimulate growth through consumer spending.

Full Article