China unveils 20-point plan to boost economic growth

Amid the economic slowdown, China on Monday unveiled a 20-point plan to increase consumption in all segments of the economy — housing, culture and tourism, as well as green consumption such as electric vehicles.

The latest economic data revealed that the country´s post-Covid recovery is losing steam with factory output slowing, reported AFP.

Factory activity contracted for the fourth month in a row in July, ramping up calls for government support measures, official figures showed.

A sluggish job market and general uncertainty over the future mean consumer confidence is low.

The measures aim to increase the supply of subsidised rental accommodation and try to solve other problems around housing, particularly for young people.

Once a driving force behind the economy, a crisis in the real estate sector means many developers are now fighting for their survival, exacerbating a crisis of confidence among potential buyers.

The country’s State Council was quoted as saying by AFP  that it would support the expansion of large-scale festivals and sporting events both on and offline, as well as an increase in spending on services involving catering and healthcare.

Infrastructure in rural areas will be improved to boost digital and green consumption, it added.

Officials told reporters they would "unleash consumption potential by optimising policy and institutional design" in the second half of the year.

Earlier on Monday the official manufacturing purchasing managers´ index (PMI) — a key measure of factory output — came in at 49.3, below the 50-point mark that separates expansion and contraction, according to the National Bureau of Statistics (NBS).

July´s reading was slightly higher than June´s 49.0 figure and was better than forecast in a Bloomberg survey.

"The overall level of manufacturing prosperity continued to improve," NBS statistician Zhao Qinghe said in a statement.