China Unveils Landmark Policies to Boost Domestic Consumption

New measures focus on raising wages, expanding social welfare, and addressing economic imbalances, but concerns about execution persist.

China has announced its most comprehensive policy package since the late 1970s to stimulate household spending and reduce economic reliance on exports.
The measures include raising minimum wages, expanding healthcare systems, and increasing pensions to address weak domestic consumption.
Experts highlight significant challenges, particularly the heavy debt burdens of local governments tasked with implementing these policies.
China’s real estate crisis and income inequality continue to suppress consumer spending, with many households saving excessively due to weak social safety nets.
Ideological resistance within the leadership, emphasizing frugality over consumption, adds further complexity to the policy's execution.