The Chinese government and the Communist Party have jointly published a long list of planned initiatives on Sunday to spend more people, in another step from Beijing to compensate for potential damage to the escalating economic warfare with Washington.
The route map for economic stimulus included larger pensions, better medical benefits and higher wages – measures that could strengthen China's domestic consumption behind. But it has assigned many of these tasks to the local authorities of the country, many of which are struggling under enormous debts and falling income from the sale of Staatsland.
The action comes when China's leaders are looking for ways to re -balance the economy on the current dependence on an ever -increasing trade surplus, which reached nearly $ 1 trillion last year. President Trump has already imposed 20 percent rates for Chinese shipments to the United States. Countries in Europe, Latin America, Africa and the Middle East also increase rates on the Chinese stream of exports produced.
Part of the document released on Sunday seemed aimed at reassuring the Chinese public that their investments were safe, so that they would spend money again. The authorities promised “to take several measures to stabilize the stock market” and to support the real estate market, which has been marred by falling real estate prices.
A housing market crash has wiped out many of the savings of the Chinese middle class over the past three years. Chinese households have responded by limiting their editions to hotels, restaurants and other services and filling savings in bank deposits that pay very little interest.
A bright spot of recent times for China has been his stock markets. In the United States, the rates and uncertainty caused by Mr Trump's policy dragged the S&P 500 to a correction last week, with more than 10 percent compared to his peak. But the Chinese markets are positive, partly on enthusiasm for the progress of the country in developing its own artificial intelligence programs. The stock market of Hong Kong, where many Chinese companies act, has risen around 20 percent since Mr Trump's inauguration.
The “special action plan to stimulate consumption” was issued in the name of two of the highest power bodies in China: the general office of the cabinet and the general office of the Central Committee of the Communist Party. The unusual step showed that the leaders of Beijing want to indicate that they want to be serious about tackling moderate domestic expenses.
The National Bureau of Statistics of China planned a press conference in Beijing on Monday morning to release economic data from January and February. Later in the day, senior officials are planned to speak at a press conference about the initiatives to increase consumption.
The plan contains many details that can be popular with the Chinese audience if it is implemented. It evokes that local authorities issue payments or increase subsidies to “people in need” and increases pension benefits of pensioners. It also commissioned the local authorities to pay their arrears of debts to companies.
But the overview that was released on Sunday contained no new promises of money from the national government to help local authorities pay for all this.
The local authorities of China, who are responsible for almost all social expenses, raised the majority of their money up to three years ago by selling the sale of Staatsland to developers in the private sector. But these sales have collapsed due to the crash of the housing market.
