China turns to rural tourism and smart appliances to boost consumption

cnbc.com:

BEIJING — Instead of handing out cash, China is trying to make sure consumers and businesses spend where it matters economically.

On Monday, the central government announced 20 measures to support tourism, as well as spur consumption of electric cars and so-called smart appliances. That refers to household devices that typically can be customized with a smartphone app, and are often more environmentally friendly.

The measures aren't just for consumers, but also for suppliers to know what to focus on, Xu Hongcai, deputy director of the Economics Policy Commission at the China Association of Policy Science, said on Tuesday.

Overall, he said the measures are meant to stabilize spending on more expensive, big-ticket items, while addressing areas of weakness such as in rural areas.

High on the list was support for purchases of new energy vehicles, which include battery-powered and hybrid cars.

While China has already extended tax breaks for new energy vehicles, authorities on Monday also called for installing battery charging stations and other measures to lower costs for electric car drivers.

Among other big-ticket items, the new measures called for encouraging households to remodel and install a complete «smart home.» Such linked appliances are also known as the internet of things.

The measures and official comments at a briefing late Monday emphasized the need to boost consumption in rural areas and at the mass market level.

The support measures announced included an entire section on spurring rural consumption. Specifics included subsidizing trade-ins for purchase of smart household appliances, improving delivery services and promoting rural tourism.

Policy for spurring consumption starts with helping consumers spend