How Will Consumption Coupons Stimulate Economic Recovery?
The Beijing Municipal Government recently announced plans to offer coupons worth 12.2 billion yuan ($1.71 billion) to spur domestic consumption severely curbed by the novel coronavirus disease (COVID-19). The first batch of 3 million coupons was issued on e-commerce giant JD.com on June 6. They can be used at participating restaurants and retailers in Beijing as well as for buying products equipped with smart technology.
Yet Beijing is not the first Chinese city to do this. In many cities across China, consumption coupons have been issued in various forms to stimulate consumption and economic recovery.
Coupons issued by companies are often seen during China’s shopping festivals, but according to statistics from cities that have already used them, government coupons can create a multiplier effect, in which an increase in spending produces
