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To spur consumption, China preps plan to boost disposable income by 2020

Published 08/15/2019, 11:38 PM
Updated 08/15/2019, 11:41 PM
To spur consumption, China preps plan to boost disposable income by 2020

BEIJING (Reuters) - China's state planner said on Friday it will roll out a plan to boost disposable income this year and in 2020 to spur consumption as the economy slows.

The plan will include further reforming the Hukou system - a family registration program that serves as a domestic passport and regulates rural-to-urban migration, and expanding channels for making non-salary income, said Meng Wei, spokeswoman at the National Development and Reform Commission (NDRC).

She did not elaborate.

Data this week showed China's economy stumbled more sharply than expected in July, with retail sales pointing to growing consumer caution, as the intensifying U.S. trade war took a heavier toll on businesses and consumers. Second-quarter growth slowed to a near 30-year low.

China has been trying to quicken its urbanization process through relaxed requirements for obtaining Hukou in urban areas, although it keeps a strict cap in top-tier cities like Beijing and Shanghai.

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