At a time when consumer spending among mainland Chinese is on a comprehensive downward trend, the city of Shanghai is distributing 500 million yuan in consumption vouchers in an effort to stimulate spending. This move has sparked intense discussions among Shanghai residents, with some questioning the relatively small allocation. With nearly 25 million people in Shanghai, this translates to an average of only 20 yuan per person.
The Shanghai Development and Reform Commission recently announced that in order to promote service consumption, they have decided to distribute 500 million yuan in “Enjoy Shanghai” service consumption vouchers across four sectors including dining, accommodation, movies, and sports. The recipients of these vouchers include residents of Shanghai, other provinces, as well as foreigners.
The distribution of the voucher funds is as follows: 360 million yuan for dining, 90 million yuan for accommodation, 30 million yuan for movies, and 20 million yuan for sports.
The vouchers come with thresholds for usage, such as discounts of 50 yuan for dining expenses over 300 yuan, 130 yuan off for expenses over 600 yuan, 220 yuan off for expenses over 900 yuan, with similar discounts for accommodation expenses over 1,200 yuan, akin to anniversary sales promotions at department stores.
According to an official report by the “Liberation Daily” on September 26, these four types of vouchers will be distributed in two phases on a first-come, first-served basis, through four different payment and ticketing platforms.
Dining and accommodation vouchers will be distributed through three payment platforms, while movie vouchers will be distributed through Maoyan Entertainment (1896) and Alibaba’s Taopiaopiao ticketing platform.
However, many Shanghai residents are skeptical about this measure.
A Shanghai freelance media person, Lao Gao, commented on the 500 million yuan service consumption voucher initiative by Shanghai, indicating that much will depend on luck. He himself feels uncertain, as luck has never been on his side. Some Shanghai residents are discontented for not being able to obtain vouchers, suggesting that the government should adopt more direct methods, such as cash subsidies, to assist those in greater need.
He mentioned that some are questioning the policy of the 500 million yuan service consumption vouchers, wondering if the investment is large enough to produce the expected effects. Particularly in a top-tier city like Shanghai, 5 billion yuan may not significantly improve the quality of life for ordinary citizens.
He also highlighted that the specific implementation details of the vouchers are a topic of public concern. Some people hope that the usage scenarios of the vouchers will not be limited to physical stores. Furthermore, concerns about resale and queries regarding the conditions under which the vouchers can be used have been raised by some consumers.
In essence, Shanghai residents hope for tangible benefits from the authorities.
Another blog writer in Shanghai, Lao Liu, who is well-versed in economics, finds the official economic policies intriguing. Regarding the 500 million yuan in consumption vouchers distributed in Shanghai, with around 25 million residents, each person receiving around 20 yuan in vouchers, he doubts the significant impact it will have on the market. In contrast, in some states in the United States, relief measures provide 1,000 to 2,000 US dollars per person.
Lao Liu questioned the effectiveness of giving an average of 20 yuan in shopping vouchers per person in Shanghai. Will it truly bolster people’s desire to consume? Or is it just creating an illusion – perhaps there will be more to come.
As of 2023, Shanghai’s population stands at approximately 25 million, composed of permanent residents mainly from the local community and long-term migrants.
Miss Yang, a Shanghai resident who wished to remain anonymous, expressed to Voice of America her opinion on the Shanghai municipal government’s distribution of vouchers, expressing her disbelief. She criticized the government for playing with taxpayers’ money, leading to potential subsidization of businesses.
Criticism has also emerged on Chinese social media platform Weibo.
A Shanghai netizen, “happymiracle09,” criticized the Shanghai government for their half-hearted efforts, stating that they shouldn’t distribute vouchers if they are not willing to make a substantial commitment to stimulate consumer spending.
Another netizen, “kidsmamdad童裝,” complained that cash would be more useful than vouchers: “Just give us money! Always trying to spend the least and gain the most, treating people as fools.”
Yet another netizen, “豌豆多多哦,” questioned the “good intentions” behind Shanghai’s distribution of vouchers: “Why does it always have to be so secretive each time they distribute? Why not be transparent about where to claim them?”
A netizen from Guangdong province on Weibo, “比叡咖哩改三,” commented that Shanghai’s initiative is a small effort to boost consumption, possibly to avoid offending other regions and the central government.
After the pandemic, Shanghai had previously distributed a total of 1 billion yuan in consumption vouchers in August 2022, using an online registration lottery system to distribute electronic vouchers for the purpose of promoting consumption.
In response to these voucher measures, Assistant Professor Lai Rongwei from Longhua University in northern Taiwan expressed to Voice of America that these measures are only temporary boosts to consumption and cannot reverse the long-term structural decline in the Chinese economy.
He noted that Shanghai’s voucher restrictions are similar to those seen in anniversary sales at department stores, with limited appeal. Given the trend of Chinese consumers saving more and spending less, especially in a context of consumption downgrading, the impact may be minimal as those willing to spend an extra 250 yuan for a 50 yuan discount would likely be few.
“After the vouchers are used up, people will continue not to consume, rendering the effect temporary and not addressing the root issues,” Lai Rongwei stated.