MNI BRIEF: China To Further Lift Controls For Consumption

China will move to ease regulation that hinders consumption to boost the economy as some controls in big cities have restricted demand for house and car purchases, said Ning Jizhe, a former vice head at the National Development and Reform Commission (NDRC) on Saturday at the 2023 Bund Summit in Shanghai.

Major indicators showed marginal improvement in August, but the economy still faces challenges including insufficient demand, companies’ operational difficulties as well as various potential risks, so the recovery will be bumpy, said Ning, now vice chairman at the China Center for International Economic Exchange, noting the country will aim to increase household income, particularly for middle and lower-income groups, to bolster consumption, and will target about 300 million migrants.

China should issue more local government special bonds and long-term debt to increase investment, improve weak links in infrastructure, and further develop areas such as telecommunications, finance, and biopharmaceuticals, the senior policy advisor said.