Beijing Issues Directive to Spur Automobile and Rural Consumption Post-COVID-19


The Chinese central government has just issued a directive to drive the consumption of automobiles and household goods as part of efforts to drive economic recovery in the wake of the COVID-19 pandemic.

The Ministry of Commerce (MOFCOM) led the issue of the “Notice on Several Measures to Boost Bulk Consumption and Key Consumption and Drive the Release of the Consumption Potential of Rural Villages” (关于提振大宗消费重点消费促进释放农村消费潜力若干措施的通知) earlier this week.

The Notice outlines specific measures for “stabilisation and expansion of automobile consumption, driving the consumption of home appliances, furniture and home improvements, and reviving food and beverage consumption.”

These measures include:

  • Encouraging relevant cities to optimise purchase restriction measures for vehicles.
  • Undertaking new campaigns for “bringing cars to the country” and “exchanging the old for the new.”
  • Encouraging certain regions to purchase delivery vehicles and passenger vehicles for rural village residents.
  • Providing subsidies for the purchase of more fuel efficient vehicles.
  • Providing subsidies for the purchase of green smart appliances and environmentally friendly furniture in certain qualified areas.
  • Improving support policies for the food and beverage sector.
  • Expediting the development of a green food and beverage sector.