China Stimulus Brings Limited Help to Lockdown-Hit Consumers
- State Council announces tax rebates, rail construction bonds
- Measures largely focused on ‘supply side,’ ING economist says
Residents scan health codes before entering a neighborhood in Beijing, China.
Source: Bloomberg
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China rolled out a broad package of support measures largely targeted toward businesses struggling to cope with Covid lockdowns, with limited relief for consumers facing job losses and sliding incomes.
The State Council, China’s cabinet, outlined a 33-point plan that gives companies more than 140 billion yuan ($21 billion) of extra tax rebates and allows them to defer social insurance payments and loans. Additional emergency loans will go toward the aviation industry, and railway construction will be boosted by 300 billion yuan of bonds.