China mulls plans to boost domestic consumption

SHANGHAI (Reuters) - The Chinese government is planning new policies
to boost domestic consumption, especially of vehicles and appliances, in
a bid to offset the effects of sagging export demand, the China Daily
reported on Wednesday, quoting a government official.
With tax
rebates on vehicles and domestic appliances either having expired or due
to expire, the government is working on new measures, said Huang Hai,
former assistant minister of commerce and a member of the economic and
trade policy consulting committee linked to the Ministry of Commerce.
These
may include subsidies for families living in affordable housing that
buy electrical appliances and for consumers planning to change cars, the
paper said.
The daily also quoted a Ministry of Commerce
spokesman as saying that the ministry was considering new programs to
expand consumption, with details to be announced next week.
Huang
also said over 10 government agencies, including the Ministry of
Commerce, the National Development and Reform Commission and the Ministry of Finance, are expected to cooperate and propose concrete plans to boost consumption at a meeting slated for April.
China's
exports have steadily fallen over the past few months on the back of
economic woes in the European Union. Exports in November expanded 13.8
percent from a year ago, the most sluggish rate in more than two years.
Europe
remains China's single largest export market, but export growth to the
continent slowed to just 5 percent in November from a year ago, the
third straight month of single digit growth and the smallest expansion
since February 2011.