China to boost household income, social security by ’25

China aims to increase household income stability by providing more direct fiscal support to consumers and enhancing social security measures by 2025.

This is part of efforts to boost domestic demand and address weaknesses in the property sector that are hindering economic growth.

China plans to increase funding from ultra-long special bonds to support industrial upgrades and consumer goods trade-in schemes next year, aiming to boost consumption.

Steps will be taken to increase household income through increased fiscal spending on consumption, improved social security, job creation, wage growth mechanisms, higher pensions for retirees, enhanced medical insurance subsidies, and policies to encourage childbirth, Xinhua reported on Monday.

Policymakers are considering adding more high-demand and potentially replaceable products to the programme, which has had a positive impact this year. The size of the 2025 funding and the specific products to be included were not disclosed.

This year, 150 billion yuan ($20.60 billion) from bonds supported consumer goods trade-ins, boosting sales revenue to over one trillion yuan. An official anticipates 5 per cent annual economic growth.

Attribution: Reuters

Subediting: Y.Yasser