China's pro-consumption policies to boost Spring Festival spending

BEIJING - Chinese authorities have rolled out a series of policy measures to unlock consumption potential during the Spring Festival holiday, as domestic demand remains a key engine for economic growth.

Local governments have allocated 2.05 billion yuan ($295.23 million) in funds to directly benefit the public through consumption vouchers, subsidies and cash handouts during the nine-day holiday period starting Feb 15, an official said on Wednesday.

The initiative, aimed at boosting festive spending, focuses on six key areas -- dining, accommodation, transportation, tourism, shopping and entertainment, Vice-Commerce Minister Sheng Qiuping told a press conference.

Specific measures include promoting festive dining and reunion banquets, offering discounts on home appliances and home renovation, increasing transport capacity, organizing cultural and tourism events, and rolling out shopping promotions in major commercial districts alongside cinema ticket discounts, according to the Ministry of Commerce (MOC).

A strong emphasis has been placed on expanding the consumer goods trade-in programs, increasing subsidies and boosting sales at brick-and-mortar retail stores.

Ahead of the Spring Festival, which falls on Feb 17 this year, China launched its annual online shopping event for festive goods. Now in its sixth consecutive year, the event began on Jan 19 and has already demonstrated significant momentum, with nationwide online retail sales reaching 989.73 billion yuan as of Feb 8, MOC official Yang Mu told the press conference.

This year's festival highlights the integration of online and offline activities, leveraging cloud-based exhibitions, livestreaming and digital interactions to create a seamless shopping experience.

Consumption of online services continues to surge. For instance, online catering and tourism services grew by 11.5 percent and 5.3 percent year-on-year, respectively, according to MOC data.

Regions such as Jiangsu, Sichuan and Liaoning have collaborated with local time-honored brands and e-commerce platforms to offer specialty goods like Suzhou embroidery and organic tea.

Sales of traditional Chinese products, such as cheongsams and handicrafts, surged by 179.7 percent and 55.9 percent, respectively, reflecting growing consumer interest in cultural goods.

The festival also serves as a bridge for cross-border trade by introducing global products while sharing Chinese Spring Festival traditions and specialty products with the world. At the main venue in Gansu, in collaboration with regions such as Ningxia, Hunan and Shanghai, imports from Arab and African countries are featured alongside local specialties sent abroad, strengthening domestic and international market links.

The Spring Festival, China's most important traditional holiday, is typically a peak season for consumer spending, driven by family reunions, travel, dining, entertainment and gift purchases.