"Let's Unlock Potential" Chinese State-run People's Daily Publishes 'Consumption Series'

Consumption Promotion Campaign for Economic Recovery
Focus on Economic Recovery through State-run Media

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Hyunjung] China, experiencing a slowdown in economic growth due to COVID-19 lockdowns, has launched a 'consumption promotion' campaign through state-run media.

On the 26th, the state-run People's Daily announced that it would publish a 'consumption series' on its economy page starting that day. The first issue was filled with news from the new energy vehicle (electric vehicles, hydrogen vehicles, plug-in hybrids) consumption scene and content encouraging purchases.

The People's Daily reported that in the first half of the year, the number of new energy vehicle registrations in Hangzhou was 81,994 units, increasing by an average of 13,666 units per month, a 59% increase compared to the previous year. It also stated that this was due to government policies such as expanded subsidies, promotional activities, and expanded charging infrastructure, and conveyed interviews highlighting the cost-saving effects for buyers.

The People's Daily emphasized, "In the first half of this year, the automobile industry has been under supply and demand pressure due to demand contraction, supply shocks, and negative outlooks," adding, "Under a series of consumption promotion and stable growth policies, cooperation within the industry and supply chain recovery have led to a clear recovery and growth in vehicle production and sales."

As a way to tap into the consumption potential of new energy vehicles, it advised, "Since the conversion rate of commercial vehicles to new energy vehicles is low, differentiated policies should be implemented," and "Customized smart vehicles targeting the younger generation should be developed to promote consumption." It also stressed, "The consumption potential of rural markets, where the consumption environment is poor and distribution is not smooth, must be further realized."

This series of reports by state-run media is understood as a kind of consumption stimulation campaign to accelerate the recovery of the recently sluggish Chinese economy following the lifting of lockdowns. The State Council of China recently recommended local governments to implement the 'Yijuhuanxin (以舊換新)' program, which provides subsidies when replacing old home appliances with new ones, and the 'Jiadian Xiangxia (家電下鄕)' program, which offers subsidies for rural residents purchasing home appliances, as part of this effort.

However, due to economic activity and consumption slowdowns caused by COVID-19 prevention policies, Chinese consumers remain reluctant to open their wallets. According to the People's Bank of China, yuan savings increased by 18.82 trillion yuan (approximately 3,650 trillion KRW) in the first half of this year, which is 4.77 trillion yuan more than the increase during the same period last year. Retail sales, an indicator of consumption vitality, showed negative growth continuously from February but recorded 3.1% in June, marking an increase after four months, though it has not yet returned to normal levels.

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