China to boost residents' incomes to spur spending

Beijing|Hong Kong: China will boost residents' income to support consumer spending, according to a cabinet meeting hosted by Premier Li Qiang, the national television broadcaster China Central Television (CCTV) reported Monday.

Chinese leaders have pledged to "vigorously" boost consumption this year as they seek to stimulate domestic demand and offset an anticipated decline in exports - a key growth driver that is expected to be hit by rising US tariffs.

"Efforts should be made to vigorously support increases in residents' income, promote reasonable growth in wage income, broaden channels for property income, and enhance consumption capacity," the cabinet said. It added efforts should also be made to improve the quality and accessibility of service consumption in various social contexts, while reiterating a policy to expand consumer goods trade-ins.


Trade-in scheme

In January, China added more home appliances to a list of products that can be used in its consumer trade-in scheme and will offer subsidies for additional digital goods, to revive demand in the sluggish household sector. China will better meet housing consumption needs and promote an "artificial intelligence plus consumption," model, as per CCTV.

The cabinet meeting said Beijing will bring more practical and effective measures to stabilise foreign investment.

Marriages fall by a fifth

Meawhile, marriages in China plummetted by a fifth last year, the biggest drop on record, despite manifold efforts by authorities to encourage young couples to wed and have children to boost the country's declining population.

China's declining interest in getting married and starting a family has long been blamed on the high cost of childcare and education. Further, sputtering economic growth over the past few years has made it difficult for university graduates to find work and those that do have jobs feel insecure about their long-term prospects.

Over 6.1 million couples registered for marriage in 2024, against 7.68 million a year earlier, as per figures from the ministry of civil affairs.