China to launch new policies to boost domestic demand

China plans to implement new policies in the second half of the year to strengthen financial coordination and boost domestic demand, according to Vice Finance Minister Liao Min. The government has already allocated 100 billion yuan (approximately 12.7 billion euros) this year toward six financial policy instruments designed to stimulate demand through fiscal coordination, market-based operations, and financial support.

As of August 1, new credit card installment purchases, including those for automobiles and residential renovations, have been included in a financial support program. This allows users to benefit from interest subsidies when using credit cards for these purchases.

Between January and July, consumption measures supported approximately 1.88 trillion yuan in household expenses, covering sectors such as food, accommodation, culture, entertainment, health, and elderly care. Additionally, six measures—four focused on investment and two on consumption—financed over 20 trillion yuan in new developments.