China unveils plan to further tap consumption potential

BEIJING - The State Council, China's cabinet, announced on Thursday a public plan to improve the mechanisms for promoting residential consumption between 2018 and 2020.

The plan, released by the General Office of the State Council, maps out ways to remove the most direct and prominent system- and mechanism-related barriers that hinder residential consumption, in order to further stimulate consumption potential.

Dovetailing with the new trend of consumption transformation and upgrading, the new document focuses on forming reasonable consumption expectations and enhancing the fundamental role of consumption in promoting economic growth.

China will nurture market segments in important domains of consumption, create a sound consumption environment and continuously raise residents' consumption capacities, the plan showed.

Before 2020, the government will relax market access in the field of service consumption, improve the policy mix for promoting the upgrading of material consumption structures, and set more standards for goods and services in important areas, the plan read.

Efforts will also be made to create a better credit system and optimize supporting measures for consumption promotion, including measures on individual income tax and income distribution reforms.