The quest to understand Beijing's views on consumer spending continues.
The latest: On August 13, China's finance ministry (MoF) said it would bring down borrowing costs for service sector firms by providing them with rebates on their interest payments.
- Curiously, authorities framed the measure – which is clearly designed to increase investment – as being an effort to boost consumption.
In this podcast, Trivium Co-founder Andrew Polk and Dinny McMahon, Head of Markets Research, discuss the idiosyncrasies of China's consumption policies.
They discuss:
- Why Beijing sees the path toward greater consumption as reliant on more investment
- Why consumption support efforts are increasingly pivoting toward services
- And why China's authorities have opted to dispense rebates on interest payments, rather than just cut interest rates outright
The Trivium China Podcast