As scorching temperatures elevate in various regions of China, with many areas experiencing heat above 30 degrees Celsius, a novel trend dubbed 'cool consumption' is emerging. In response, online travel agencies are introducing summer vacation packages, while local governments are implementing substantial subsidies, totaling tens of millions of yuan, to spur domestic spending.

Qian Daizhe, the head of domestic vacation products at Tongcheng Travel, shared insights with Global Times, pointing out that the rise in temperatures has led to a heightened demand for nearby getaways and water-based activities. Given that there are limited long holidays approaching, aside from the Dragon Boat Festival, they've expanded their offerings of short-haul weekend trips, which now include both one-day and overnight packages.

The heatwave gripping northern China has sparked an increase in online searches for terms like 'cooling off', 'beach', and 'weekend'. As summer approaches, cities are witnessing a migration of residents toward cooler destinations. For instance, people from Beijing are heading to the Beidaihe beaches, Shenyang locals are opting for seafood and beer, while residents in Harbin are seeking relief at Jingpo Lake.

In South China's Guangdong Province, Shenzhen has announced its 2025 summer consumption season, scheduled from June through August. This campaign includes over 500 events that encompass various activities such as dining, accommodation, travel, shopping, and entertainment. Moreover, it aims to attract cross-border spending, widening its reach beyond just domestic consumers.

To bolster its status as a global consumption hub, Shenzhen will leverage policies such as a 240-hour visa-free transit and instant tax refunds for international visitors. The city plans to host duty-free shopping festivals alongside integrated culture-tourism events, creating a more appealing environment for consumers.

Meanwhile, East China's Jiangsu Province has outlined its strategy to conduct more than 1,500 consumer events throughout the year. They aim to allocate over 450 million yuan in consumer vouchers and 17 million yuan in digital yuan envelopes, engaging around 35,000 businesses. This initiative seeks to generate a closed-loop consumption model driven by government incentives and corporate offers.

Experts emphasize that local governments are essential in crafting innovative consumption scenarios and harnessing potential seasonal spending. These seasonal campaigns are increasingly recognized as effective means to stimulate domestic demand.

Furthermore, Harbin in Northeast China's Heilongjiang Province has initiated an automotive promotion campaign, unveiling 48 million yuan in subsidies for car purchases. This promotion is not restricted to regional buyers and welcomes individual purchasers from across the nation.

Eligible purchases for these subsidies include new passenger vehicles that comply with National VI emission standards, encompassing new-energy vehicles. The subsidies range from 3,000 yuan for vehicles priced under 150,000 yuan to 5,000 yuan for those costing above 300,000 yuan.

Amid lingering trade uncertainties, businesses remain cautious about expansion, impacting employment and economic activity, as pointed out by Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine. In response, government-led consumption initiatives could inject vitality into the market, creating a cycle that drives sales, fuels spending, and enhances tax revenues.

Bian suggests that through policy innovation, local governments are crucial in aligning consumer demand with business supply. He argues that tools like consumption vouchers and tax reductions have successfully stimulated household spending, leading to tangible benefits for consumers and an upswing in retail sales. These initiatives can catalyze cash flow, elevate tax income, and build a mutually beneficial cycle amongst households, businesses, and government bodies.