China urged to restore normal working lives to lift consumption, vouchers seen to have limited long-term impacthttps://www.scmp.com/economy/china-e...ited-long-term
Gaoxin district in Chengdu, Sichuan province, this month issued a new round of consumption vouchers worth 100 million yuan (US$14.3 million)
China’s retail sales fell by 5.9 per cent last month compared to a year earlier, although Beijing has so far been reluctant roll out a nationwide scheme
However, the current batch of consumption vouchers may not be ideal for a long-term consumption recovery, as the real constraint is citizens’ income, according to Mao Zhenhua, director of the Institute of Economic Research at Renmin University in Beijing. “I don’t see them as consumer vouchers – they are, in fact, promotional vouchers,” Mao said, with some vouchers offering discounts which are paid for by the government and business.
But instead of vouchers that require people to spend a fixed amount of money to get a discount, Mao suggests that the central government give China’s 1.41 billion residents cash vouchers worth 5,000 yuan (US$716) each.
China urged to restore normal working lives to lift consumption, vouchers seen to have limited long-term impacthttps://www.scmp.com/economy/china-e...ited-long-term
Gaoxin district in Chengdu, Sichuan province, this month issued a new round of consumption vouchers worth 100 million yuan (US$14.3 million)
China’s retail sales fell by 5.9 per cent last month compared to a year earlier, although Beijing has so far been reluctant roll out a nationwide scheme
However, the current batch of consumption vouchers may not be ideal for a long-term consumption recovery, as the real constraint is citizens’ income, according to Mao Zhenhua, director of the Institute of Economic Research at Renmin University in Beijing. “I don’t see them as consumer vouchers – they are, in fact, promotional vouchers,” Mao said, with some vouchers offering discounts which are paid for by the government and business.
But instead of vouchers that require people to spend a fixed amount of money to get a discount, Mao suggests that the central government give China’s 1.41 billion residents cash vouchers worth 5,000 yuan (US$716) each.
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