'License Plate Restrictions Eased to Boost Car Sales'... China Accelerates Consumer Stimulus Efforts

Liquor Chang "Consumption is the growth engine... Need to increase the number of license plates"
Subsidies for new car purchases in rural areas... Encouraging home appliance sales
Emphasizing domestic demand activation amid COVID resurgence

[Image source=Yonhap News]

[Asia Economy Beijing=Special Correspondent Cho Young-shin] While the world is struggling with the resurgence of the novel coronavirus infection (COVID-19), China is accelerating efforts to boost consumption, including expanding the allocation of automobile license plates.

According to China's state-run People's Daily and Xinhua News Agency on the 19th, Premier Li Keqiang chaired a State Council executive meeting the day before and emphasized that "consumption is the main engine of economic growth," instructing the preparation of measures to expand automobile sales.

To expand car sales, the Chinese government has introduced measures to ease regional automobile purchase restrictions and license plate allocations. Since 2012, China has limited the number of vehicle registrations through a license plate lottery system called 'Yaohao.' The structure requires obtaining a license plate through a lottery before purchasing a car. Currently, Beijing allocates 100,000 new automobile license plates annually (including 40,000 for new energy vehicles).

Premier Li stated, "There is a need to increase the number of automobile license plates," adding that this should stabilize and expand domestic automobile consumption.

As the Chinese leadership has announced plans to increase the share of new energy vehicle sales from the current 5% to 20% by 2025, it is highly likely that license plate allocations will increase with a focus on electric vehicles.

Additionally, to expand automobile sales in rural areas, subsidies will be provided for replacing old vehicles with new cars (engine displacement of 1600cc or less). Along with this, the expansion of infrastructure such as electric vehicle charging facilities and parking lots was also ordered.

A source in Beijing said, "The Chinese leadership is expected to foster the automobile industry for the time being through additional license plate allocations, replacement of old vehicles in rural areas, and expansion of infrastructure for new energy vehicles such as electric cars," adding, "There is a high possibility that electric vehicle sales will increase noticeably."

Besides automobiles, Premier Li also encouraged sales of home appliances with large expenditure scales such as TVs and refrigerators. To this end, subsidies will be provided for replacing old appliances with energy-efficient eco-friendly smart appliances.

At the meeting, a new plan called 'Internet + Tourism' was also confirmed to support the tourism industry, which has been severely impacted by COVID-19. This involves actively utilizing IT technology to support the tourism industry, such as expanding the distribution of electronic maps and providing voice-guided tourism services.

This content was produced with the assistance of AI translation services.