domestic consumption
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Interest Subsidies on Purchases Under 50,000 Yuan: Will Consumers Increase Spending, e.g., on Cars?
Beijing is launching a program offering interest subsidies on individual consumer loans from September 2025 to August 2026. The subsidies, capped at ¥50,000 per transaction, target purchases in sectors like automobiles, elder care, education, tourism, home improvement, electronics, and healthcare. Borrowers can receive an annual 1% interest subsidy, up to 50% of the loan’s interest rate. Individuals are eligible for a cumulative subsidy of ¥3,000 per lending institution. The initiative aims to boost domestic consumption, sparking debate about consumer financing choices.
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China’s Mianyang Advocates 2.5-Day Weekend Trial, Sparking Public Envy
Mianyang, Sichuan, launched a pilot 2.5-day weekend policy under its 2025 consumption revival plan to stimulate domestic spending through flexible work schedules, including shared parental leave. The initiative aims to distribute tourism demand, ease overcrowding during peak holidays, and boost regional economic sectors. Social media engagement reflects strong public support, while analysts project potential tourism revenue growth. Early trials in Zhejiang saw 15-20% increases in hospitality earnings. However, adoption challenges remain for manufacturers and SMEs. The policy signals a strategic shift toward leisure-driven economic rebalancing, linking extended free time to broader consumer spending in services.
