China accelerates consumption-driven growth model

The plan aims to increase residents' income with a multi-pronged approach, focusing on:

-Promoting reasonable growth in wages.

-Expanding channels for property income.

-Implementing diverse measures to raise rural incomes.

-Resolving payment arrears to enhance consumption circulation.

Wang Jingwen, director of the Macro Research Center affiliated to the China Minsheng Bank Research Institute:

The capital market performance directly impacts residents' property income. Since September 2024, policy efforts to boost the capital market and stabilize stocks and real estate reflect the central authorities' prioritization. The special action plan builds on these strategies, promising healthier market development and improved consumption capacity.

Liu Shijin, former deputy director of the Development Research Center of the State Council:

Urban and rural pensions should be raised from 220 yuan ($30.41) per month to 400 yuan per month in one to two years, 600 yuan in three years, and 1,000 yuan in five years. The consumption potential exceeding 1 trillion yuan is expected to be unlocked, driving nearly 1 percentage point of annual GDP growth.