China's state planner, National Development and Reform Commission (NDRC), announced a 10-point plan to promote consumption and boost economy. Measures included lowering the cost of logistics, boosting car sales and improving the quality of housing projects, according to a statement on the commission's website.
The new measures outlined by China’s top economic planner underscore the central government’s deep concern with overcapacity across China’s economy, which has been caused as a result of weakening industrial demand as growth slows. The 10-point guideline seeks to reinvigorate China's domestic consumption as the country experiences severe overcapacity.
Under the NDRC’s new requirements, the government will also establish a risk-assessment mechanism to measure efficiency of power production. That would take into account capacity-utilization ratios and other factors. The NDRC said local governments must take action when these indicators show “significant divergence” from normal levels.
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