Local Governments Allocate 297 Million to Boost Spring Festival Spending

As the Spring Festival draws near, local governments across China are mobilizing substantial financial resources to enhance consumer spending. A total of 2.05 billion yuan, equivalent to approximately 297 million dollars, has been earmarked for consumption vouchers aimed at encouraging expenditure during the festive period.

This announcement was made by an official from China's Ministry of Commerce during a press conference held in Beijing, highlighting a strategic initiative designed to invigorate domestic consumption as families prepare for the extensive nine-day holiday.

Vice Minister of Commerce Sheng Qiuping noted that this year marks the longest Spring Festival period in history, forecasting a surge in spending as individuals engage in purchasing gifts, festive goods, and travel for leisure. To catalyze this consumption wave, the MOFCOM plans to introduce several high-value policy packages, incorporating incentive structures such as gift packages and lottery initiatives.

In support of these initiatives, MOFCOM has recently collaborated with the National Development and Reform Commission and the Ministry of Finance to allocate a significant first batch of central government subsidies, amounting to 62.5 billion yuan. This funding will be distributed among various regional commerce departments to ensure consumers can access these financial supports during the holiday.

Moreover, a novel lottery invoice pilot program has been launched in fifty cities, enabling consumers to enter prize draws based on their shopping invoices totaling 100 yuan or more. Over the six-month period of implementation, a substantial prize pool of 10 billion yuan is set to fuel interest during the holiday, with more than 1 billion yuan specifically allocated for the Spring Festival.

The People's Bank of China, along with the National Financial Regulatory Administration, will steer financial institutions and digital payment platforms to work closely with merchants. This collaboration aims to enhance promotional offers across various sectors including travel, dining, and recreation.

Sheng also emphasized the welcoming atmosphere for international visitors during the Spring Festival, mentioning an extensive network of over 13,000 tax-refund shops nationwide that will provide discounts to foreign tourists, further stimulating consumption.

Furthermore, digital services for inbound visitors are set to improve as eleven major government departments, including the Ministry of Commerce and the Cyberspace Administration of China, roll out new initiatives to simplify access.

With major airlines increasing routes to accommodate high demand, this year's Spring Festival is expected to be a vibrant period for commerce across China, backed by robust government efforts to boost economic activity.