China’s flagging consumer spending prompts cities to hand out tens of millions of yuan in shopping vouchers
- China’s retail sales growth slowed in November, as coronavirus outbreaks continued to disrupt production and the labour market
- Consumption’s contribution to China’s gross domestic product growth has declined since the start of the year
Chinese cities are giving out tens of millions of yuan worth of vouchers to boost consumer spending dampened by weak economic growth and stringent coronavirus containment measures.
Starting early in December, a number of cities including Nanjing, Zhengzhou, Hefei and Chongqing are promoting local consumption with vouchers for restaurants, entertainment, tourism and other consumer activities.
Hefei in the eastern province of Anhui is set to distribute 40 million yuan (US$6.3 million), one of the largest handouts across the country, as it seeks to promote spending in restaurants, shopping malls and supermarkets, and boost car sales.
China’s northeastern Jilin province will roll out vouchers for entertainment and tourism-related activities worth 10 million yuan, focused on promoting local ice and snow activities.