Recently, Wei Gejun, an advisor to the People's Bank of China (PBOC), stated that China's central bank should develop new policy tools to promote consumption while increasing support for the real estate and capital markets.

Wei Gejun suggested that the central bank should guide financial institutions to expand consumer credit issuance, aiming to create a positive cycle where government policies stimulate consumption, consumption drives the market, and businesses expand investment.

In addition, he recommended expanding the PBOC's macroprudential and financial stability functions to support the housing market, including increasing funding support for affordable housing construction. These recommendations come amid mounting pressure on Chinese policymakers, especially as the U.S. threatens to raise tariffs, posing risks to Chinese exports. As a result, authorities are being urged to implement long-term consumer-focused policies.Experts believe that only by further expanding domestic demand can stable economic growth be achieved. (Photo / Sourced from Pexels)

China’s economy has recently faced challenges, including a sluggish property market, weakened business confidence, and slow consumption growth. Although the government has implemented various fiscal and monetary policies to boost the economy, consumer spending has yet to meet expectations.

Experts believe that only by further expanding domestic demand can stable economic growth be achieved.

Wei Gejun's recommendations have gained support from some economists, who suggest that China should adopt measures similar to those in other countries, such as offering tax incentives, shopping subsidies, and consumption vouchers to directly boost consumer spending.

Additionally, some experts have proposed lowering interest rates to reduce borrowing pressures on businesses and individuals, thereby improving purchasing power.