China is handing out billions of yuan in shopping coupons to support retailers crushed by the Covid-19 outbreak, but the subsidies are doing little to support the kind of discretionary spending needed to revive the economy.
Instead, a big chunk of the vouchers end up spent at supermarkets on daily necessities, with little boost seen in spending on restaurants, tourism, or bigger ticket items.
As Beijing scrambles to revive consumption and get its economy back up, analysts doubt vouchers will have much effect in restoring spending. "Lots of coupons are spent on daily necessities," said Zhang Qidi, visiting researcher at the Center of International Finance Studies at the Central University of Finance and Economics in Beijing. "When
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