China told to remove purchase restrictions, set mandatory targets to spur consumption
A prominent member of China’s top political advisory body wants less regulation and more respect for consumer choice
“Let the rich spend. This is the most direct [approach],” said Yin Yanlin, who was deputy director at the Office of the Central Financial and Economic Affairs Commission, a party organ overseeing economic policy, from 2018 to 2023.
Yin, now a senior economic adviser in the Chinese People’s Political Consultative Conference, made the comments at a Peking University organised seminar on Thursday, where he outlined the challenges of deepening reform.
Spending by affluent groups can drive market demand and generate income growth, setting off a positive cycle, he said. One of the most important tools to boost consumption lies in removing restrictions, such as those on property and vehicle purchases.
Yin said certain restrictions have constrained diversified consumption and weakened domestic demand. Income levels are not the main impediment, he stressed, noting that the country’s savings have been rising.
In the first seven months of 2025, savings in China increased by over 18.4 trillion yuan, including nearly 9.7 trillion yuan (US$1.35 trillion) from households, according to central bank data.
[Policymakers should] respect the right of consumers to make their own decisions
However, new bank loans contracted by 50 billion yuan (US$6.96 billion) in July – the first monthly decline in 20 years – according to a Morgan Stanley research note on Wednesday citing central bank data. The drop shows continued caution among households and businesses, as the country’s prolonged property slump shows no sign of bottoming out.