Beijing: Seeking to lift domestic production, promote high technology and prevent an economic slowdown, the Chinese government has announced a subsidy package worth Rs 3.52 lakh crore. However, public reluctance to spend is continuing, raising concerns over weak domestic demand.
While China’s export sector remains strong, steady consumer spending is seen as essential for the economy to run smoothly. In recent months, many consumers have preferred saving over shopping, leading to piled-up inventory in markets and only limited growth in domestic retail sales.
To encourage purchases, the government introduced special discounts for people replacing older electronic devices such as mobile phones with new ones. Under the plan, subsidies are being provided for the purchase of about 10.8 crore digital and smart electronic products.
The scheme offers a 15% discount on items including smartphones, tablets, smartwatches and smart glasses. Subsidies have also been announced for six categories of energy-saving household appliances.
Officials say sales of electronic goods have improved within the country, but remain below earlier levels. Despite rising exports, the continued weakness in domestic demand is a key worry for the Chinese government.
