Originally posted by the Voice of America.
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China Plans to Lift Economy by Boosting Consumption

Joyce Huang

   China said Monday it boasts $182 trillion in total national assets,
   which it hopes will provide enough support to lift its economy out of
   contraction by boosting domestic consumption after the coronavirus
   outbreak is contained.

   But analysts say local consumers, who have been holding out because of
   lockdown policies and concerns about finances, are unlikely to go on a
   shopping spree to make up for lost time.

   Declining income?

   "To some extent, everyone's wealth [income] would be affected by the
   COVID-19 pandemic. So, as a whole, it is almost impossible to have a
   wealth effect to bolster [China's] domestic consumption," Liang
   Kuo-yuan, president of Polaris Research Institute in Taipei, told VOA.

   China is the world's second-biggest economy.

   Ning Jizhe is vice chairman of China's National Development and Reform
   Commission (NDRC). He said at a newsconference Monday that domestic
   consumption has recovered and has seen an 8.3% increase in April from
   March, although it still posted a 7.5% decline compared with the same
   period last year.

   Ning said he expects the improvement to be stronger in May although no
   catch-up spending is in sight. He added that the Chinese government has
   kicked off measures to boost spending in the commodity and service
   sectors.

   China has also pledged to build up 5G networks and internet connections
   as a way to encourage both e-commerce and spending on organic
   agricultural products, the official said.

   Economic stimulus

   According to Ning, China plans to raise $140 billion through the
   issuance of national treasury bills and $526 billion in local
   government bonds to stimulate the economy.

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