China's cabinet has unveiled steps to support job creation, improve labour mobility and cut social insurance rates, in a bid to halt a slowdown in income growth that could hurt consumption. Consumption is driving China's economic growth, but a further slowdown in income growth in the third quarter highlights the challenges to a transition away from manufacturing and heavy industry.
"The downward pressure on the economy is transmitting to the area of income distribution," the cabinet said in guidelines published on the central government's website. "We must further deepen reforms of the income distribution system, adjust and optimize income distribution policy, broaden the channels of employment and entrepreneurship, and strive to create a fair environment that is stimulating and progressive." Per capita disposable income rose 6.3 percent year-on-year in the January to September period to 17,735 yuan ($2,6314), government data showed, down from 6.5 percent growth in the first half of the year and the slowest since 2013, the year in which the data was first released.
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