Chinese Economy All Set To Revive Again
After controlling the corona virus infection, China is trying to revive its economy again. China has resumed production operations after two months of lockdown due to Covid-19. Meanwhile, in order to speed up economic activity by promoting consumption, it is distributing coupons to the public, which people will spend in the market and this will increase demand and accelerate production. The Chinese government Global Times gave this information in a report.
Coupons of different amount
Coupons of different amounts are being distributed ranging from 10 to 100 yuan (about 100 to 1000 rupees) to people in various provinces of China. Digital transfers of the coupons is also taking place. People can spend these in shops, restaurants, departmental stores or tourism sector. According to the report, more than 3 million coupons will be distributed by June 30 only in Shandong Province.
The plan is also to distribute coupons worth Rs 30 crore in Luohu district of Guangdong province in South China. Coupons have been arranged for the public as well as the shopkeepers participating in the scheme.
Coupons worth around Rs 20 crore are being distributed in East China’s Jangsi state, which started on Saturday. So far this scheme has been started in 30 cities of the country. Crores and billions of rupees will be distributed among the people through these consumer coupons. This amount is being transferred to people digitally, for which companies like Alibaba and Tencent are being resorted to.
Wang Jan comments upon the effectiveness of the scheme
Wang Jan chief economist of the Bank of China told the Global Times that the decision to distribute coupons to accelerate consumption and demand is the best way to battle economic slowdown. Changes have been made according to the location and situation. The scheme is well organised and properly structured. This is helping to restart the offline business. This will encourage people to go out and spend, because vouchers also have an expiry date.
“Amount increased, applicable across the country,”
Wang also appealed to other cities and provinces to join the campaign, saying that the coupon should be carefully distributed among low-income people and the needy. However, he also said that the amount of the voucher is not enough and it is running at the local level rather than national level. Its impact on the country and GDP will have to be evaluated and analysed.
China cases sees a dip
China Corona virus cases in China have reduced significantly now. There have been 39 new cases in China in 24 hours, out of which 38 cases have been reported where people have become infected from abroad. On Sunday, one person died due to infection in the virus epicentre Hubei province, after which the death toll in the country has risen to 3,331. A total of 81,708 people have been diagnosed with infection in the Chinese territory till Sunday, including 1,299 patients undergoing treatment, 77,078 patients discharged from hospital after recovery and 3,331 people who died due to illness.
However, in India the cases does not seem to slowdown. The total confirmed cases in India lies at 4426. The total deaths are 114. Active cases in India presently are 3,981 and 326 people have either recovered or discharged from the hospital.