SEVERO, CHINA
A prominent member of China’s leading political advisory body advocates less regulation and more respect for consumer choice – a way to stop breaking consumption and nullify the domino effect that caused the bank and real estate crisis.
A high political responsible of China appealed to Relief of restrictions to the real estate sector and other markets, with the objective of spend Among the richest population, at a time when Beijing intensifies efforts to stimulate consumption against deflationist pressures.
“Let the rich spend. This is the most direct approach, ”he said Yin Yanlinwhich was between 2018 and 2023 deputy director of the Central Commission Office for Financial and Economic Affairs, China’s Communist Party body responsible for supervising economic policy.
According to Yin, currently senior economic counselor at the Chinese people’s political advisory conference, consumption by the wealthier groups can boost demand in the market and generate income growthcreating a positive cycle.
One of the most important instruments to stimulate consumption is the elimination of restrictions, such as those that Limit the purchase of real estate and vehicles.
China’s economy, which in recent years has ceased to grow – largely due to crisis in the sectors of the bank and real estate, And to the domino effect of the Evergrande real estate giant, it was still the beginning of this year, but to give some.
O Real Estate Sector boosted the Economic Boom from China in recent decades, but the builders contracted large loans as they transformed the cities of the country.
The situation contributed to increase the total debt of companiesstate and families for the equivalent of over 300% of annual economic production, an unusual value for an average yield.
According to, several major Chinese cities have been relax, in recent years, the restrictions the purchase of housing, in an attempt to support the debilitated real estate market. Even the capital, Beijing – traditionally cautious – flexed last week controls in its peripheral zones.
Yin stresses that certain restrictions have limited to diversification of consumption and weakened the internal demand. The levels of performance is not the main obstacle, he said, noting that the country’s savings rate has been increasing.
In the first seven months of 2025, savings in China grew over 18.4 billion yuans, including nearly 9.7 billion yuans (1.15 billion euros) from families, according to data from the Central Bank.
However, according to a report by Morgan Stanley released on Wednesday, which cites data from the Chinese Central Bank in July, new bank loans recorded a Contraction of 50 billion yuans (almost 6 billion euros) – first monthly fall in 20 years.
The descent reflects Persistent caution of families and companiesat a time when the prolonged real estate crisis gives no signs of recovery.
“Political decision makers must respect the consumer right to make their own decisions and exceeding rooted practice of administrative intervention, ”says Yin, who calls for elimination of purchasing, loan and prices that suffocate demand. less direct intervention in the real estate market.
Lu FengProfessor of Economics at the University of Beijing, points out that the increase in consumption is fundamental for the country to affirm not only as an industrial power, but also as consumer power.
In 2024, the Family consumption in China represented 46.8% of GDP – About 15 percentage points below the world average. This low ratio limits internal demand and compromises the sustainability of economic growthsaid in March Liu Shangxiformer president of the Chinese Academy of Tax Sciences.
