China Intensifies Consumption Strategies During Lunar New Year with 2.05 Billion Investment in Subsidies

As the most important festival on the Chinese calendar approaches, the Chinese government announced a comprehensive set of measures aimed at stimulating the economy during the Lunar New Year holiday period. The initiative, which mobilizes significant resources in subsidies and incentives, reflects a commitment to boost consumer demand across multiple segments of society.

The Vice Minister of Commerce revealed that the nine-day holiday will represent a historic opportunity to expand economic activities, with particular emphasis on maintaining citizens’ purchasing power. According to information released by RTHK, the budget allocated to these initiatives reaches 2.05 billion yuan, resources that will be directed through consumption vouchers, sectoral subsidies, and the distribution of red envelopes with traditional benefits.

Government Incentives Cover Multiple Sectors During Lunar New Year

Authorities will implement a coordinated strategy among various departments, creating promotional packages targeted at key economic sectors. The focus is on the hospitality, food, and retail sectors, where special offers and promotional discounts will be provided. Local administrations will further increase subsidies for product replacement programs during the period, ensuring that consumers from different income groups can participate in the Lunar New Year celebrations without significant financial restrictions.

The benefits structure was designed to reach consumers at various economic levels, highlighting the distribution of digital red envelopes and vouchers, which will serve as tools for direct transfer of purchasing power to citizens.

Contests and Special Promotions Boost Consumer Participation

To increase public engagement, authorities will implement receipt lottery activities in 50 pilot cities, distributing over 1 billion yuan in prizes to participants. The mechanism is simple: consumers who make purchases exceeding 100 yuan in these locations can enter a lottery, turning their commercial transactions into opportunities for additional winnings.

This approach not only encourages increased shopping volume but also promotes transaction formalization through receipts, fostering transparency in commercial operations. The expectation is that this lottery dynamic will act as a catalyst for consumption during the Lunar New Year, creating a more festive shopping environment.

E-commerce and Tourism Show Significant Growth

The online festival of Lunar New Year-themed products, launched last month, is already showing impressive results. E-commerce platforms and brands have launched campaign after campaign, generating an astonishing volume of transactions. As of the last reported Sunday, domestic online retail sales exceeded 989.7 billion yuan, with online food services growing by over 11% and online travel expanding by more than 5%.

Additionally, authorities plan to attract international tourists during the Lunar New Year celebration by offering modernized payment environments that accept bank cards, mobile transactions, and traditional cash. More than 10,000 tax-free stores will offer a wide range of quality products, with foreign travelers enjoying an additional 10% discount on their purchases. This strategy of opening up to international tourism presents an opportunity to diversify consumption sources during the festive period, adding foreign currency revenue for local merchants.

The convergence of these measures around the Lunar New Year demonstrates a multifaceted government approach, combining direct subsidies, playful promotions, payment infrastructure modernization, and international participation expansion as complementary mechanisms to stimulate the economy during the holiday.