China will put forward new policies to boost consumer demand for automobiles and home appliances, said Ning Jizhe, deputy director of the National Development and Reform Commission, Securities Daily reported.
The key to boosting demand during the current economic downturn is increasing the income of consumers, said Liu Yuanchun, vice president of Renmin University of China.
The government may consider offering vouchers to special groups to increase their disposable income while implementing further tax and fee reductions, Liu said.
Liu believes boosting consumption will better spur economic growth than boosting investment.
Ge Shoujing, a senior researcher at Reality Institute of Advanced Finance, pointed out that the buying power of China’s middle class is limited because of heavy mortgage burdens. The government may consider further tax cuts and the provision of subsidies, Ge said.