China to raise pensions, expand trade-ins next year

China’s Ministry of Finance announced on Tuesday that it would increase fiscal support for consumption next year by raising pensions and medical insurance subsidies for citizens, as well as expanding consumer goods trade-ins.

The country will increase the basic pension for retirees and urban and rural residents, and financial subsidy standards for medical insurance for urban and rural residents to actively promote consumption, the ministry said.

The ministry added that China will increase support for consumer goods trade-ins, enhance investment effectiveness, and stimulate more social investment through government funding.

The measures aim to enhance people’s well-being, bolster the policy framework to accommodate population growth, and reinforce the social security and healthcare systems, according to the announcement.

The fiscal spending will boost technological innovation capabilities and provide full support for the research and development of key core technologies to drive industrial upgrading.

At a recent meeting, Chinese leaders vowed to boost the budget deficit, issue more debt, and ease monetary policy to support stable economic growth amid anticipated trade tensions with the US under a returning Donald Trump.

Chinese authorities have agreed to issue a record-high 3 trillion-yuan worth of special treasury bonds next year, according to Reuters sources. This move is part of Beijing’s efforts to boost the economy through increased fiscal stimulus.

Attribution: Reuters

Subediting: M. S. Salama