What: The reopening of China to the world allows many industries to wake up and see normal levels of traffic again.

Why it is important: The perspective of vouchers distribution at the national level might very well trickle down and encourage a consumption boom in the country.

Xinhua reports that following the downgrade of Covid-19-related regulations in China, restaurants, malls and cinemas, now fully reopened, witness a rise in terms of footfall, up to 75% of pre-pandemic levels in cinemas for instance.

Overall, the consumption is boosted by the ice-snow industry boom following the Winter Olympic games, which also helps the domestic flight and hospitality industries. When it comes to retail, it is expected that residents increase their consumption per capita from 8 to 12%, and total retail sales increase anywhere between 7 and 11%. It is also expected that China, following example from many other countries, step up the issuance of consumption vouchers, a practice that was already done at the local level, for a total value of $3.3bn, and it is expected that the total figure might quintuple that amount.

China’s consumption on the rise after Covid response shift