China unveils plan to boost consumption as Trump tariffs bite

China has announced a wide-ranging “special action plan” to promote domestic spending, in an effort to counter the economic impact of tariffs imposed by US President Donald Trump.

China has announced a wide-ranging “special action plan” to promote domestic spending, in an effort to counter the economic impact of tariffs imposed by US President Donald Trump. The initiative, announced Sunday by the official Xinhua news agency, is ambitious but short on specifics. It covered everything from boosting people’s incomes to establishing a childcare subsidy system, and expanding a “cash-for-clunkers” program to trade in old goods like cars and electronics. The plan builds on Premier Li Qiang’s promise during a major political meeting earlier this month to ensure that the “giant ship of China’s economy” will “sail steadily toward the future.” He had set an ambitious growth target of “around 5%” for this year. That would be possible only by boosting spending, to ensure China doesn’t need to rely on exports to power its vast but slowing economy. At a news conference on Monday to answer questions about the plan, Li Chunlin, deputy director of the National Development and Reform Commission, the top planning agency, acknowledged that consumer confidence remained weak. “There is still a lot of work to be done to boost consumption, expand domestic demand and better meet the people’s needs for a better life,” he said.