Core Viewpoint - The article emphasizes the importance of boosting consumer confidence and increasing the income of low- to middle-income individuals as key strategies for stimulating domestic consumption and economic growth in China [1][5]. Group 1: Consumption Growth and Economic Impact - In the first two months of this year, China's total retail sales of consumer goods reached 837.31 billion yuan, showing a year-on-year growth of 4%, which is an acceleration of 0.5 percentage points compared to the previous year [6][7]. - The consumption structure has shown significant support from categories such as sports and entertainment products, with double-digit growth in home appliances, furniture, and communication equipment, while automotive consumption has slightly declined [6][7]. - The government has introduced a series of policies aimed at boosting consumption, and it is believed that consumption growth could exceed 5% this year, which is crucial for achieving the GDP growth target [7]. Group 2: Policy Measures and Subsidies - The "old-for-new" consumption policy has been effective, with last year's subsidies of 150 billion yuan leading to 1 trillion yuan in corresponding consumption, particularly benefiting home appliances, electric vehicles, and mobile phones [8][9]. - This year, the subsidy scale for the "old-for-new" policy has increased to 300 billion yuan, which could potentially drive 2 trillion yuan in consumption, contributing approximately 4 percentage points to overall consumption growth [8][9]. - There is a need to differentiate between policy-driven consumption increases and inherent consumer demand, as the current "old-for-new" policy primarily benefits discretionary spending rather than essential goods [9]. Group 3: Income Growth and Structural Reforms - Increasing residents' income is essential for boosting consumption, with suggestions for enhancing social security measures and optimizing the wage system in state-owned enterprises [12][16]. - The article highlights the importance of targeted subsidies for low-income populations, as rural consumption is growing faster than urban consumption, indicating significant potential in rural markets [15][18]. - The government is encouraged to simplify unemployment insurance processes and increase support for unemployed individuals to enhance their purchasing power [17]. Group 4: Service Consumption and Urbanization - Service consumption in China has been growing faster than physical goods consumption, indicating a shift in consumer behavior and preferences [19]. - Urbanization policies that encourage population movement to larger cities could further stimulate service consumption, as larger urban areas benefit from economies of scale [19].

Core Viewpoint - Consumption remains the primary driving force for economic growth, with service consumption showing a positive trend and becoming a new growth point for consumption [2] Group 1: Service Consumption - The government will implement actions to enhance service consumption quality and organize a series of activities to promote service consumption [2] - The main issue in goods consumption is weak consumer capacity and willingness, while the main challenge in service consumption is insufficient quality supply [2] Group 2: Policy Initiatives - The government plans to expand pilot programs in telecommunications, healthcare, and education, and promote orderly opening in internet culture, enhancing the quality of service supply [3] - There have been over 700,000 applications for vehicle replacement subsidies and over 300,000 for vehicle scrapping subsidies since 2025, totaling over 1 million applications [2]