Authorities also pledged to abolish all “excessive restrictions” on consumption and unlock spending in areas such as culture, tourism, sports and healthcare.
Spring and autumn holidays will be introduced for primary and secondary school students where conditions permit, alongside staggered paid leave arrangements, as laid out in the government work report.
The move builds on earlier measures to support families and boost spending, including nationwide childcare subsidies and the addition of two extra public holidays last year.
Dong from Merchants Union Consumer Finance said the shift reflects a broader change in approach.
“The focus of fiscal policy is shifting from investing in ‘things’ to investing in ‘people’, with the aim of fundamentally strengthening the economy’s internal growth momentum,” he said.
But even as Beijing renews policy support to boost consumption and incomes, analysts cautioned that key challenges remain.
Goh said higher incomes may help at the margin, but confidence remains closely tied to the property market, which remains mired in a prolonged downturn.
He cited a 2019 People’s Bank of China survey showing housing accounts for nearly 70 per cent of urban household assets.
“When property prices are adjusting, the wealth effect turns negative and precautionary saving rises,” he said.
“Support for childcare and elderly care may matter more than direct income transfers. These reduce uncertainty about future costs rather than just adding to today’s income.”
Su Yue, chief China economist at the Economist Intelligence Unit (EIU), said job uncertainty is likely to continue weighing on consumer confidence.
“Measures to boost incomes and employment are a positive step, but their impact may be limited without sufficient fiscal resources attached,” she said.
She added that enforcement could also prove challenging as technological shifts driven by artificial intelligence (AI) disrupt the labour market, while authorities must balance job support with maintaining corporate confidence.
https://www.channelnewsasia.com/east-asia/china-two-sessions-gdp-economy-households-tech-defence-5973386
