China Appliance Subsidies To Boost Consumption CNY450 Bln
BEIJING (MNI) - Chinese government subsidies to boost purchases of energy-saving home appliances and other items will boost consumption by CNY450 billion, a senior official with the country's economic planning agency said in comments published Thursday.
The estimate of Zhao Jiarong, a deputy-secretary general of the National Development and Reform Commission, comes after the government said Wednesday that it will earmark CNY36.3 billion to encourage purchases of energy-saving home appliances, lighting, cars and other equipment.
"Expand energy-saving consumption can stabilize growth, expand domestic demand and also promote structural adjustment," the official Xinhua News Agency quoted Zhao as saying.
The subsidies follow a dismal set of April economic data released last Friday, with retail sales, investment, output and bank lending all falling far short of market expectations.
The government followed that with an announcement Saturday of a 50 basis point reserve requirement cut, though analysts say that more needs to be done to prop up growth than increase liquidity in the interbank system.
Subsidies for purchases of eco-friendly cars helped Japan's economy expand by a faster-than-expected 1% in the first quarter of this year, the Cabinet Office said earlier Thursday.
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