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China Subsidy Exchange

August 31, 2017

China Boosts Information Consumption and Domestic Demand

The State Council of China published Guidelines on Further Expanding and Upgrading Information Consumption and Continuously Releasing Domestic Demand Potentials (Guo Fa (2017) No. 40) on August 24, 2017, to boost China’s domestic demand through information consumption (including through development of information technology and the internet of things). The Guidelines call for creating a multi-party cooperative development environment involving government, enterprises, and consumptions, with a target of growing information consumption by more than 11% per year and reaching RMB 6 trillion of sales by 2020. The Guidelines give priorities to the development of information consumption in daily life, public service, industrial service, and new technology. The Guidelines call on the government to encourage and support information consumption technology R&D and industrialization and building E-Commerce platforms through government grants and preferential tax policies. The Guidelines also encourage financial institutions to develop more suitable financial products and services to lower the financial service costs associated with information consumption.