China Urges Cities to Ease Car Purchase Curbs, Take Other Measures to Spur Consumption
Zhu Yanran
DATE:  Jul 01 2024
/ SOURCE:  Yicai
China Urges Cities to Ease Car Purchase Curbs, Take Other Measures to Spur Consumption China Urges Cities to Ease Car Purchase Curbs, Take Other Measures to Spur Consumption

(Yicai) July 1 -- The Chinese government is rolling out a number of stimulative measures to encourage spending, including recommending that municipalities lift vehicle purchase limits.

Cities such as Beijing and Shanghai, which restrict car purchases due to the congestion on the roads, should relax these restrictions, increase the vehicle purchase quota and pilot reforms to create new scenarios for car purchases, the National Development and Reform Commission and other government agencies said in a document released on June 24.

Local governments are also encouraged to promote more auto post-sales products and services, such as car rallies, self-driving trips, auto modification and vehicle rentals, said the document, which included a number of suggestions to boost consumption in areas ranging from restaurants and tourism to sports, healthcare, childcare and community services.

These measures will help unleash consumption potential, said Zhou Maohua, a macro researcher at China Everbright Bank's financial market division. Promoting autonomous driving will help create new scenarios for big ticket items and unleash huge spending potential. They will also help improve the auto industry's development and enhance its international competitiveness.

It is not the first time that the Chinese government has proposed lifting auto buying curbs. In May, the State Council said in its action plan for energy conservation and carbon reduction that new energy vehicle purchase restrictions should be gradually removed.

More refined catering scenarios should be developed, such as local delicacies, to create new dining out options, the State Council said. Dining services should adapt to cater to the varied needs of different groups of people such as children and pregnant women. Restaurants should carry out digital transformation and smart upgrades.

Chinese residents are putting more emphasis on quality rather than price in recent years as their disposable incomes increase, and spending on services rather than commodities has jumped, Zhou said. The new measures will optimize China's consumption scenarios and better meet consumer needs.

Editors: Liao Shumin, Kim Taylor

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Keywords:   Consumption,Car,Catering