china seeks to boost car, electronics sales as economy slows - chinese appliance manufacturers

As tensions with the United States escalate, China has unveiled a stimulus plan to help stimulate demand for cars and electronics. S.
Threatening to hurt the world second. The largest economy
The policy announced on Thursday does not include any new spending from the central government, but encourages local governments to provide "support" where they can ".
According to a statement on the website of the National Development and Reform Commission, local governments will be banned from imposing any new restrictions on the purchase of cars or the use of new energy vehicles.
China is trying to support a slowing economy as domestic demand is weak and disputes with the United States are worseningS.
The largest export market.
After announcing a massive tax cut earlier this year, the government was limited in terms of how much money it provided, which could be a factor in why the announcement was not as generous and inflated as the previously leaked draft.
"These measures may not be enough to reverse the slowdown in consumer growth," Hong Kong said, as the lack of mandatory spending could weaken implementation
Chief economist of Bilbao bank in Asia.
So far, the authorities have been targeting stimulus measures because they don't want to put pressure on the currency and they don't want to trigger debt --
Related risks, he said. Consumption-
Support policies alone are not enough to boost domestic demand. -
Xia said the government needs to ease the uncertainty of economic growth and income to effectively stimulate people's spending.
Earlier story: Don't pin your hopes on the massive stimulus stock of automakers after the announcement.
Auto maker BYD Co. , Ltd.
Climbed six.
2% vehicles in Hong Kong, Great Wall Motor Co. , Ltd.
Advanced up to 2. 7%.
"The market has been waiting for stimulus, and now it's like boots are finally landing," said Xu Haidong, assistant secretary general of the China Association of Automobile Manufacturers.
He said that although the central government does not have direct financial support, this indicates the right direction for local governments to follow and stimulate consumption.
China said that in order to weigh the stimulus measures to promote consumption and remove obstacles to car consumption, the policy urged local governments to focus on guiding car use based on factors such as pollution and congestion, except for any new restrictions prohibited.
Local authorities should also give support when families get married for the first time.
The NDRC says the time has come to buy cars.
Chinese car sales have fallen sharply in the past 11 months, and carmakers have called on the government to help.
Read more: China's car crash continues as consumers wait for incentives. The NDRC "focuses on automotive, home appliances and consumer electronics to consolidate the escalation trend in these industries, according to its statement.
Its goal is to "form a strong domestic market and achieve high
Quality development.
"The government will promote the next generation of 5g mobile phones, encourage the use of artificial intelligence and the internet of things to develop smart home products, promote consumers to upgrade appliances, discard energy
Inefficient products
Electrical manufacturers are also encouraged to strengthen with real-
Real estate developer
"This policy is generally in line with the government's position to encourage domestic consumption and energy --
The efficiency of home appliances, "Robin Yuen, an analyst at UOB Kay Hian, said in a report on Thursday. China’s home-
Home appliance manufacturers such as Gree Electric Appliances
Zhuhai & Midea Group Co. , Ltd.
Facing fierce competition in the industry and the challenges of stagnant growth in the national real estate market.
According to the annual report of the United States, domestic sales in the industry increased by 1% in 2018, slower than in previous years.
Analysts at Bloomberg pointed out that the weak income of Chinese home appliance manufacturers is usually after the slowdown in residential property sales.
New trends in easing policies may support electrical sales in 2020 and beyond, they said. —