China's Consumption Shift: New Policies, Old Habits

0:00This is Global News Today, every region, every story, every day. China's leaders are pushing a big shift to revive the slowing economy by getting people to spend more. At this year's key political meetings in Beijing, they set the lowest growth targets since 1991, aiming for 4.5 to 5 percent. This comes with new plans to boost household incomes and consumption, moving away from the old focus on building factories and infrastructure. Housey makers wrote out measures like better services for seniors, stronger enforcement of paid annual leave, and more help for families with kids. They also launched an income growth plan to put more money in people's pockets and close urban rural gaps. Meanwhile, they're still betting on tech and advanced manufacturing in the next five year plan. Many Chinese households spend less of their income compared to other major economies, and online reactions show some skepticism. No media users questioned if paid leave is really for rest, or just a spark spending,

1:00and debated needs like more marriage leave or child rearing. Support Experts say the push for consumption led growth is clear, but the policies might not change habits quickly. The property market slump is a major drag after years of crisis from developer debts and falling home prices since 2021. Real estate used to drive a quarter of the economy and build family wealth, but now it's a road in confidence and jobs. Add in dropping birth rates, high youth unemployment, and deflation risks, and spending stays weak. Beijing has cut mortgage rates and eased buying rules to steady housing, but recovery is slow. Analysts expect a gradual move to consumption as the main driver, rather than a quick fix. The real test is rebuilding household confidence amid global trade pressures. DNN is brought to you by our sponsor link in the description. Do not just fall asleep, drift into what you are listening to, S-O-L-I, solelypillow.com.