(Yicai) March 17 -- The Chinese government has unveiled a plan to “vigorously boost” domestic consumption and expand demand by introducing measures to lift incomes and beef up social security, among other initiatives.

China will promote reasonable wage growth by strengthening employment support in line with current economic conditions and by raising the minimum wage, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council wrote in a document issued yesterday.

The government’s annual work report delivered to parliament on March 5 said its main economic priorities for this year were increasing consumption and expanding demand. The report proposed supporting wage growth through various means, particularly focusing on raising those of low- and middle-income groups and improving the mechanism for salary increases.

Enhancing social security and lifting household incomes are seen as essential to raising consumer confidence and spending.

Consumption contributed 44.5 percent to China's economic growth last year, powering growth by 2.2 percentage points, according to data from the National Bureau of Statistics. Consumer prices fell last month for the first time in 13 months, dropping 0.7 percent from a year earlier, compared with a 0.5 percent increase the previous month, NBS figures showed.

The new consumption plan also calls for expanding property income channels through measures aimed at stabilizing the stock market and developing more bond products suitable for individual investors. It further proposes exploring ways to unlock the value of houses owned by farmers through rental arrangements, equity participation, and cooperative models.

The 30-point package also seeks to ease the economic burden on households in areas such as childbirth, elderly care, and healthcare through childcare subsidies, more educational resources, increased fiscal subsidies for basic state pensions and basic medical insurance, as well as bigger pensions.

Moreover, China will promote niche tourism. For example, by encouraging tourism through high-quality cultural performances and sports events, new ice and snow-themed tourist attractions and resorts, and by further expanding the list of countries whose citizens can enjoy visa waivers.

To ensure that people have enough time for travel and consumption, China will strictly enforce the paid leave system, legally protect workers’ vacation rights, prohibit the illegal extension of working hours, and encourage eligible regions to explore the introduction of spring and autumn breaks for primary and secondary school children in addition to the existing summer and winter vacations.

Under the plan, China will also continue to implement its consumer goods trade-in program, introduced last year. It will make use of proceeds from ultra-long special treasury bonds to help finance product upgrades, including of cars and home appliances, to more green and smart models.

Additionally, China will lower the lending rate on housing provident funds in a timely manner to boost residential property demand.

Editors: Dou Shicong, Emmi Laine