China promotes consumption with targeted measures

China is intensifying its strategy to strengthen private consumption and will carefully release the remaining funds from its program to support the exchange of consumer goods. The central government supports local authorities in using these funds at a steady pace, as reported by the state news service Securities Times. As part of this initiative, the government has already transferred 162 billion yuan out of a total of 300 billion yuan in special state funds to local governments. This campaign is a crucial step in boosting consumer spending in the world's second-largest economy, which already positively impacted retail sales last month. However, at least six cities and municipalities in China suspended their subsidies for car purchases in June. Such a move could raise questions about the implementation and effectiveness of government measures to stimulate consumption in these regions.