Shanghai considers proposals to reinvigorate consumption

Shanghai’s political advisers have put forward proposals in an attempt to revitalize consumption.

Jin Hongfei, dean of international finance at Shanghai University of Finance and Economics, has suggested that high-end products and high-tech gadgets get tax breaks as an incentive for the industry.

Subsidies and tax breaks for consumption could help boost retail sales and help important economic sectors and new technologies, Jin said.

The annual session of the Shanghai Committee of the Chinese People’s Political Consultative Conference, which began on Tuesday, is focused on revitalizing consumption.

At this year’s session, dozens of ideas aimed at increasing consumption incentives were submitted.

Shen Kaiyan, director of the Institute of Economics at the Shanghai Academy of Social Sciences, has proposed turning important landmarks into tourist attractions and cultural activity venues.

She also advised that the city’s major business districts be differentiated with new characters and shopping scenes in order to attract a variety of shoppers.

She said that “Chinese characteristics” and other cultural themes at the district level and in the five “new towns” will help build a unique brand that will attract customers.

The Shanghai Committee of the Revolutionary Committee of the Chinese Kuomintang called for further impetus to emerging brands and an industry-specialized fund to assist innovative projects.

It also recommended Shanghai’s time-honored brands accelerate their digitization and product innovation to inject fresh momentum.

Members of the city’s Federation of Industry and Commerce recommended that the subsidies for new-energy vehicles and gasoline vehicles should be maintained. Targeted incentives for small and medium-sized businesses are also required to help the economy recovery and keep the industry chain improving, it said.