This content was originally published by Radio Free Asia, and it is now licensed for reprint.
China has set out ideas to get the government’s 1.4 billion people to spend more on eating out, hospitality and pleasure, in a last-ditch charge to save the flagging economy.
Governments across the country may step up measures to increase private spending on commerce, historical attractions and eating out through special deals, local festivals and high-end restaurants, the government’s case, the State Council, said in a law published on its official website.
People should also be given tax incentives to spend more on care of the elderly and of children, including education, the document said, although it was n’t clear whether the government would reverse a , 2021 ban , on the multibillion yuan private tutoring industry.
The announcement comes after java giant Starbucks posted a , sharp decline in revenue  , at stores across China, suggesting falling getting strength among the country’s white-collar group.
Ruling Chinese Communist Party leader Xi Jinping has  , called for sweeping measures , to stimulate consumer spending in a bid to revive the country ‘s , flagging economy.  ,
In April, the government urged homeowners to , replace private equipment, while automakers , slashed prices , in a pay to promote consumption in early 2023.
The state has even , touted childrearing , as a nationalist way to increase customer spending, offering a slew of financial incentives for people to have more children.
In keeping with this method, the State Council said regional authorities should also invest in nursery, and “guide schools to offer third-party institutions with relevant qualifications to offer non-disciplinary high-quality public welfare after-school services”, the announcement, which was published Aug. 3 but dated July 26, said.
Additionally, it recommended that local governments use vacant lots and urban lots to host sports events, including winter sports.
Vague policy goals
In order to meet “diverse and personalized healthcare needs,” the directive also mentions online health consultations and health exams.
According to the statement, governments of all levels should take action to combat online fraud and false advertising while also upholding consumers ‘ rights.
Although the majority of the document was given over to sloganeering and ambiguous policy objectives, Qin Weiping, a researcher with the U.S., claimed little about how the directive should be put into practice.
He claimed that it appeared to ignore China’s consumers ‘ current lack of confidence.
” I think this]directive ] is totally out of keeping with the actual economic situation in China”, Qin said. ” These so-called tasks … are n’t actually feasible — they’re just slogans devoid of specific policies”.
The document calls for “improvements” in the quality of online literature and performances, online gaming, and audiovisual content, and for further developments in immersive experiences and scripted entertainment.
However, it was not clear whether the government intended to revive the decades-old private tutoring business to ensure that families ‘ children received the best possible education possible.
According to a commentator who only gave the name Sky, Li Qiang, the state council’s head, was likely the author of the document.
According to Sky,” Li Qiang clearly names one of the five pillar industries chosen to promote service consumption” the education and training sector. According to the statement,” This indicates that Li Qiang has officially rebelled against Xi Jinping, the head of the Chinese Communist Party.”
” Li Qiang has a pretty good understanding of economics”, they said.
Tinkering with previous measures
The insistence on rebuilding online services comes after Chinese financial regulators , pulled the plug , on a planned U. S.$ 37 billion listing of Alibaba founder Jack Ma’s fintech Ant Group in November 2020.
Qin said, however, that the State Council plan appeared to be “tinkering around the edges” of these earlier policy adjustments rather than altering them.
Their policies” completely disregard the growth of enterprises and the economy” and “do n’t seem to care about the prospects for ordinary people’s employment,” he said.
” The economic figures are n’t looking good, and their tax revenues have fallen significantly, so they are issuing this urgent guidance in place of specific policies”, Qin said.
Lucy, a former Chinese subject specialist in the private tutoring industry who now resides in the US, claimed that the demand for more educational services suggests that the country’s economy is “really beyond redemption.”
She claimed that the educational system’s deeper problems were n’t really addressed by the tutoring ban.
” It just entrenched class differences, and made it harder for kids at the bottom of the ladder to move up it”, she said. They want to encourage consumption, which wo n’t be very helpful, right now.
Even government efforts to stimulate financial markets have failed, according to a Shanghai-based parent who feared reprisals by using only the surname Chen.
” They keep releasing good news, but it does n’t have any impact”, he said. ” Everyone, from ordinary people to officials, lacks confidence in the future”.
