Even if growth remains moderate, authorities hope to stimulate domestic shopping and tourism.
“Work less to consume more”: this could be the new slogan of Chinese President Xi Jinping. Its prime minister, Li Qiang, signed a decree Tuesday creating two new public holidays starting in 2025. The Lunar New Year holiday will increase from three to four days, and a May 2 public holiday will be added to the already non-working May 1 May. indicates IL Global TimesEnglish-speaking newspaper aligned with the Party.
Stimulate a stagnant economy
If the authorities place emphasis on the well-being of the population, they are above all trying to revive a stagnant economy. These provisions should « promote consumption and incentivize the service sector, in particular tourism and leisure »indicates the Global Timeswhich quotes Li Changan, professor at the China Academy of Open Economy Studies. These two days are to encourage Chinese people to go shopping or be a tourist. By adding Chinese New Year’s Eve to the existing public holidays, which in 2025 will fall on January 29, it will be possible to meet with family members for eight consecutive days.
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However, it’s all a matter of nuances. Because to tell the truth, the two public holidays are not a gift. They are added to the calendar to extend popular holidays but workers will have to make up for them at another time. The Chinese will officially increase their public holidays to 13, two days more than the French. But in reality they should continue to work as before.
What are the potential long-term effects of the new public holidays on China’s economy?
Interview between Time.news Editor and Economic Expert
Time.news Editor (TNE): Welcome, everyone! Today we’re diving into a fascinating shift in China’s approach to stimulating its economy. Joining us is Dr. Li Mei, an expert in Chinese economics with over two decades of experience. Dr. Li, thank you for being here.
Dr. Li Mei (DLM): Thank you for having me! It’s great to be here.
TNE: Let’s start with the recent announcement of two new public holidays by Prime Minister Li Qiang. This seems like a significant move. What impact do you think this will have on domestic consumption and tourism?
DLM: Absolutely! The slogan “Work less to consume more” reflects a fundamental shift in policy aimed at promoting domestic shopping and tourism. By adding an additional day to the Lunar New Year and introducing a new holiday in May, the government hopes to encourage more people to travel and spend money.
TNE: That sounds promising! But we know the economy is currently facing stagnation. Do you think these holidays alone will be enough to stimulate growth?
DLM: While they are a step in the right direction, they are unlikely to be a panacea. Moderate growth is challenging, but these holidays can provide a temporary boost. People tend to travel more during long weekends, which can stimulate local economies. However, a broader strategy is needed to sustainably enhance economic activity.
TNE: Interesting point. What other measures do you think the government could implement alongside these holidays to support economic growth?
DLM: The government could consider expanding social welfare programs, improving infrastructure, and investing in green technologies. Encouraging local businesses and tourism through subsidies or promotions can also ignite spending. It’s essential to create an environment where consumers feel secure and motivated to spend.
TNE: That makes sense. Shifting gears a bit, how do you think the public will respond to this initiative? Is there a historical precedent for government holidays effectively stimulating the economy?
DLM: Historically, public holidays in China have led to increased domestic travel and spending. For example, during the Golden Week holiday, there’s a significant spike in tourism and consumer activity. However, the effectiveness largely depends on the current economic sentiment and consumer confidence. If people feel optimistic about the future, they’re more likely to spend.
TNE: You mentioned consumer confidence. How critical is that for the success of these new holidays?
DLM: Extremely critical! Consumer confidence is a driving force behind spending. If individuals feel uncertain about their financial prospects, they are less likely to indulge in discretionary spending, even with more holidays. It’s crucial for the government to communicate that these changes are part of a larger strategy for improvement.
TNE: Dr. Li, thank you for sharing your insights today! It sounds like managing consumer sentiment will be just as important as implementing new policies.
DLM: Exactly! Thank you for having me. It will be interesting to see how these changes unfold and what additional measures may come into play.
TNE: Thank you, Dr. Li, and thank you to our viewers for joining us today! Stay tuned for more updates on global economic developments.