China Details Subsidy Plan for Personal Consumption & Service Industry Loans - Lula Briefs Xi on US Ties
Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Wednesday, August 13, 2025.
Page 1: At the top of the page is a report on Xi Jinping’s call with Brazilian President Luiz Inacio Lula da Silva. As per the report, Xi said that:
“China is willing to work with Brazil to seize opportunities, strengthen coordination, and achieve more mutually beneficial cooperation outcomes, setting an example of solidarity and self-reliance among major countries in the Global South, and jointly building a more just world and a more sustainable planet.” 中方愿同巴方一道，抓住机遇，加强统筹，打造更多互利合作成果，树立全球南方大国团结自强典范，携手构建更公正世界和更可持续星球.
“Xi Jinping said that China supports the Brazilian people in defending their national sovereignty and supports Brazil in safeguarding its legitimate rights and interests. All countries should unite and firmly oppose unilateralism and protectionism. The BRICS mechanism is an important platform for building consensus in the Global South. We congratulate Brazil on the successful hosting of the BRICS Summit. Countries in the Global South should work together to uphold international fairness and justice, uphold the basic norms governing international relations, and safeguard the legitimate rights and interests of developing countries. China and Brazil should continue to jointly address global challenges, ensure the success of the UN Climate Change Conference in Belém, and encourage the Group of Friends of Peace to play a role in promoting a political resolution to the Ukrainian crisis.” 习近平表示，中方支持巴西人民捍卫国家主权，支持巴方维护自身正当权益。各国应团结起来，旗帜鲜明反对单边主义、保护主义。金砖机制是凝聚全球南方共识的重要平台，祝贺巴西成功举办了金砖国家领导人会晤。全球南方国家应携手维护国际公平正义，维护国际关系基本准则，维护发展中国家的正当权益。中巴要继续共同应对全球性挑战，确保联合国气候变化贝伦大会成功，推动“和平之友”小组为政治解决乌克兰危机发挥作用。
The report also says that Lula briefed Xi on “the recent situation of Brazil’s relations with the US as well as the Brazilian side’s principled position of firmly safeguarding its own sovereignty, and expressed appreciation for China’s persistence in multilateralism, in safeguarding the rules of free trade, and in playing a responsible role in international affairs. The Brazilian side is willing to strengthen communication and coordination with the Chinese side within BRICS and other multilateral mechanisms, oppose unilateral bullying actions, and safeguard the common interests of all countries.” 卢拉介绍了巴西同美国关系近况以及巴方坚定维护自身主权的原则立场，赞赏中国坚持多边主义，维护自由贸易规则，在国际事务中发挥着负责任作用。巴方愿同中方加强在金砖等多边机制中的沟通协调，反对单边霸凌行径，维护各国共同利益.
It’s interesting how these developments are shaping up. For instance, late last week, Putin had also called Xi to brief him on developments in ties with the US. This was in the context of the upcoming Alaska summit between Putin and Donald Trump. He also spoke to Indian Prime Minister Narendra Modi. The Russian readout of that call had said:
“Vladimir Putin shared the key outcomes of his meeting with US President's Special Envoy Steven Witkoff, held on August 6 in Moscow. The Prime Minister thanked the President of Russia for the information and confirmed India's unwavering stance in favour of settling the situation surrounding Ukraine via political and diplomatic means.”
Do note that Modi also subsequently spoke to Ukrainian President Volodymyr Zelenskyy. The Indian readout of that call said: “President Zelenskyy shared his views on the recent developments related to Ukraine. Prime Minister thanked President Zelenskyy and reaffirmed India’s steadfast and consistent position for peaceful settlement of the conflict and support for efforts aimed at earliest restoration of peace. PM reiterated India’s commitment to extend all possible support in this regard.”
The Ukrainian readout said:
“Narendra Modi expressed support for Ukraine’s efforts to achieve a just and lasting peace. The leaders share a common position: everything concerning Ukraine must be decided with Ukraine’s participation. Other formats will not yield results. Volodymyr Zelenskyy and Narendra Modi also discussed sanctions against Russia in detail. The President emphasized the need to restrict exports of Russian energy resources, particularly oil, to reduce Russia’s potential and ability to finance the continuation of the war. The Head of State underscored that it is important now for every leader with tangible leverage over Russia to send the corresponding signals to Moscow. The President and the Prime Minister agreed to schedule a personal meeting in September at the UN General Assembly and to work on arranging an exchange of visits.”
On Tuesday, Putin called North Korean leader Kim Jong Un. Bloomberg reports that:
“Putin thanked Kim for supporting his war on Ukraine as the two leaders ‘exchanged views on the issues of mutual concern’, North Korea’s official Korean Central News Agency said. The Kremlin had earlier said Putin shared information with Kim ‘in the context of the upcoming talks’ with Trump. ‘Kim Jong Un expressed firm conviction that the DPRK would always remain faithful to the spirit of the DPRK-Russia treaty and fully support all measures to be taken by the Russian leadership in the future,’ KCNA said, referring to a mutual defence pact the two leaders signed last year. DPRK stands for the North’s official name, the Democratic People’s Republic of Korea. The phone conversation, which was held in a ‘warm comradely atmosphere’, according to North Korea, took place just three days before Putin and Trump are set to meet in Alaska as part of the latest US effort to negotiate a ceasefire in the Ukraine conflict, now in its fourth year.”
Meanwhile, EU leaders, except Hungary, issued a joint statement on the upcoming talks. It said that the EU “welcome(s) the efforts of President Trump towards ending Russia’s war of aggression against Ukraine and achieving a just and lasting peace and security for Ukraine.”
“A just and lasting peace that brings stability and security must respect international law, including the principles of independence, sovereignty, territorial integrity and that international borders must not be changed by force. The people of Ukraine must have the freedom to decide their future. The path to peace in Ukraine cannot be decided without Ukraine. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities. Russia’s war of aggression against Ukraine has wider implications for European and international security. We share the conviction that a diplomatic solution must protect Ukraine’s and Europe’s vital security interests. The European Union, in coordination with the US and other like-minded partners, will continue to provide political, financial, economic, humanitarian, military and diplomatic support to Ukraine as Ukraine is exercising its inherent right of self-defence. It will also continue to uphold and impose restrictive measures against the Russian Federation. A Ukraine capable of defending itself effectively is an integral part of any future security guarantees. The European Union and Member States are ready to further contribute to security guarantees based on their respective competences and capabilities, in line with international law, and in full respect of the security and defence policy of certain Member States and taking into account the security and defence interests of all Member States. The European Union underlines the inherent right of Ukraine to choose its own destiny and will continue supporting Ukraine on its path towards EU membership.”
Finally, Trump is expected to meet with European leaders on a call today. Politico reports:
“Trump and his team have repeatedly consulted with Europe on Ukraine since his special envoy Steve Witkoff met with Putin last week. They also held several calls briefing European officials on Russia’s offer in recent days and convened a meeting of national security advisers in London on Saturday. European officials have appreciated the Trump administration’s efforts to reach out, the latest sign of his shift toward the continent, but worry about whether there’s an actual openness to their perspective. ‘The main thing about tomorrow is whether this is a real discussion, real consultation and whether this will help the president to shape his own approach or whether it’s going to be just some nice words and no real consultation,’ said a European official, granted anonymity to discuss sensitive diplomacy. The increased engagement that has built over months through a number of channels. The U.S. Ambassador to NATO, Matthew Whitaker, has played a key role in encouraging Trump to see the value of the alliance and consider the European point of view, a U.S. official said. Trump spoke warmly of the 32-member alliance during its annual summit in The Hague this year after the group committed to a historic defense spending target of 5 percent of GDP. On top of that, European officials have made a concerted effort to improve their standing with Trump during his second term, flattering him and leaning into his hobbies and preferences. Some feel they’re finally seeing results from that effort. Certainly his approach to Ukraine appears to be more measured than it was in the first months of his term when he memorably berated President Volodymyr Zelenskyy about not having ‘the cards’ in an effort to force him to accept a lopsided peace deal. But the mere fact that Trump is meeting with Putin — and the president’s comments this week explaining his approach — still have many on the continent doubting that all the consultations will amount to anything. ‘Everybody is somewhere between worried and outraged,’ said a second European official, referring to the meeting and the lingering confusion about what Trump is prepared to agree to. The official was granted anonymity to speak candidly about private conversations in Brussels and among other NATO allies. Trump’s declaration Monday that a peace deal will require some ‘land swapping’ created new confusion around where the U.S. president stands on the outlines of a potential agreement to end the war — and whether he would back the Kremlin’s latest proposal under which Ukraine would cede land Russia’s military doesn’t currently control, the second European official said. ‘This could be exactly the scenario we feared right after Trump took office,’ the individual said. ‘We fear Trump doesn’t recognize Putin’s long-term intentions … [buying] time only to annex more territories later on … a complete breach of international law.’ The White House and the president have worked to temper expectations about the high-profile summit in Anchorage, Putin’s first visit to the U.S. in a decade. Trump told reporters he’s simply aiming to assess the Russian leader’s seriousness about seeking peace, one that if successful could lead to direct talks between Putin and Zelenskyy. Trump feels that he’s ‘got to look at this guy across the table. ‘I need to see him face to face’...’I need to make an assessment by looking at him,’ Secretary of State Marco Rubio said in a radio interview that aired Tuesday. But White House officials have indicated that they viewed Russia’s latest maximalist proposal as a sign that ‘shows progress’ and that Putin may be serious about negotiating an end to the war. They have emphasized that Putin’s request for a meeting suggests a change.”
Anyway, back to PD. Quite like yesterday, there’s an article making the argument that China’s economy remains stable despite challenges. Among other things, the piece talks about the importance of the top-level policy instruction of the four stabilities, i.e., stabilising employment, enterprises, the market, and expectations.
Finally, there’s a long Ren Ping piece which talks about the “Two Mountains” concept of Xi Jinping, i.e., lucid waters and lush mountains are invaluable assets. This is in the context of August 15th being National Ecology Day. The article argues that “green and low-carbon development will shape China and influence the world.” The article says:
“High-quality development and high-level conservation complement each other. High-level conservation underpins high-quality development, ensuring the sustainable development of the Chinese nation and the continued inheritance of Chinese civilisation. In facing the global challenge of properly handling the relationship between development and protection, the ‘Two Mountains’ concept uses dialectical thinking to break open the problem, uses a systemic perspective to solve it, and, by innovating upon traditional growth theory, has broken through the cognitive limitation of the ‘economic–ecological binary opposition’ and the path dependence of ‘pollute first, treat later’ seen in the modernisation process of the West, leading China in the new era onto a civilised development path where production develops, life is prosperous, and the ecology is in good condition. ‘In the entire process of building Chinese-style modernisation, we must all grasp well the dialectical and unified relationship between high-quality development and high-level protection.’ General Secretary Xi Jinping’s important exposition reveals the practical path of ecological civilisation construction that benefits both the present and future generations…” 高质量发展和高水平保护相辅相成，以高水平保护支撑高质量发展，让中华民族永续发展、中华文明赓续传承。面对处理好发展和保护的关系这一世界性难题，“两山”理念以辩证法破题，以系统观念解题，以对传统增长理论的革新，打破了西方现代化进程中经济与生态“二元对立”的思维局限、“先污染后治理”的路径依赖，引领新时代中国走出一条生产发展、生活富裕、生态良好的文明发展道路。“在中国式现代化建设全过程中，我们都要把握好高质量发展和高水平保护的辩证统一关系。”习近平总书记的重要阐述，揭示了生态文明建设功在当代、利在千秋的实践路径.
“‘Standing at the height of safeguarding national ecological security, the continuous development of the Chinese nation, and being responsible for human civilization’ means that in planning development, one must ‘take the carrying capacity of resources and the environment as the premise and foundation’, and in goal pursuit, firmly believe that ‘protecting the ecological environment is protecting the value of nature and increasing the value of natural capital.’ From adhering to the principle of ‘jointly focusing on conservation, not extensive development’ in the development of the Yangtze River Economic Belt to prioritising conservation in the new era of promoting western development, we uphold the ecological values of respecting, adapting to, and protecting nature. ‘Protecting Qinghai’s ecological environment is a matter of great national importance 国之大者’. Qinghai shoulders the crucial mission of maintaining ecological security and continuously promotes ecological protection and high-quality development on the Qinghai-Tibet Plateau…” “站在维护国家生态安全、中华民族永续发展和对人类文明负责的高度”，意味着在谋划发展上必须“把资源环境承载力作为前提和基础”、在目标追求上坚定“保护生态环境就是保护自然价值和增值自然资本”。从长江经济带发展坚持“共抓大保护，不搞大开发”，到新时代推动西部大开发把大保护放在首位，坚持的是尊重自然、顺应自然、保护自然的生态价值观。“保护好青海生态环境，是‘国之大者’”，青海肩负起维护生态安全的重大使命，持续推进青藏高原生态保护和高质量发展；“在这里，生态具有非常重要的战略意义”，西藏守护好生灵草木、万水千山，成为世界上生态环境最好的地区之一;
Prioritising protection is a long-term, holistic, and comprehensive approach, firmly grasping our strategic position within the broader national development landscape.坚持保护优先，算的是大账、长远账、整体账、综合账，牢牢把握的是在全国发展大局中的战略定位... “Important assertions such as ‘new quality productive forces themselves are green productive forces’ reveal the deep logic that taking green and low-carbon development as the fundamental solution to ecological and environmental problems is essential.” “新质生产力本身就是绿色生产力”等重要论断，揭示的是把绿色低碳发展作为解决生态环境问题治本之策的深层逻辑.
Page 2: There’s a report informing that the Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration recently jointly issued the ‘Implementation Plan for the Fiscal Subsidy Policy for Personal Consumption Loans’.
“As per the plan, between September 1, 2025, and August 31, 2026, individuals who use personal consumption loans (excluding credit cards) issued by loan processing institutions for actual consumption, and for which the loan processing institutions can identify the borrower’s relevant consumption transaction information through loan issuance accounts, will be eligible for interest subsidies in accordance with regulations. The subsidies cover single purchases of less than 50,000 yuan, as well as single purchases of 50,000 yuan or more in key areas such as household automobiles, elderly care and childbirth, education and training, cultural tourism, home furnishings, electronics, and healthcare. For single purchases exceeding 50,000 yuan, the subsidy is capped at 50,000 yuan. After the policy expires, consideration may be given to extending the policy period and expanding the scope of support based on its effectiveness. 根据方案，2025年9月1日至2026年8月31日期间，居民个人使用贷款经办机构发放的个人消费贷款（不含信用卡业务）中实际用于消费，且贷款经办机构可通过贷款发放账户等识别借款人相关消费交易信息的部分，可按规定享受贴息政策。贴息范围包括单笔5万元以下消费，以及单笔5万元及以上的家用汽车、养老生育、教育培训、文化旅游、家居家装、电子产品、健康医疗等重点领域消费。对于单笔5万元以上的消费，以5万元消费额度为上限进行贴息。政策到期后，可视实施效果研究延长政策期限、扩大支持范围.
Regarding the interest subsidy standard, the plan makes clear that the annual subsidy rate is 1 percentage point, and shall not exceed 50% of the loan contract interest rate. The central government and provincial governments shall bear 90% and 10% of the subsidy funds, respectively. The loan contract interest rate must comply with the relevant interest rate self-regulatory agreements. During the policy implementation period, at a single loan-handling institution, the total interest subsidy a single borrower may enjoy on all personal consumer loans is capped at 3,000 yuan (corresponding to a total qualifying consumption amount of 300,000 yuan), of which the cap on total interest subsidies a borrower may enjoy on personal consumer loans of less than 50,000 yuan each at a single loan-handling institution is 1,000 yuan (corresponding to a total qualifying consumption amount of 100,000 yuan). 对于贴息标准，方案明确，年贴息比例为1个百分点，且最高不超过贷款合同利率的50%，中央财政、省级财政分别承担贴息资金的90%、10%。贷款合同利率需要符合相应利率自律约定。政策执行期内，每名借款人在一家贷款经办机构可享受的全部个人消费贷款累计贴息上限为3000元（对应符合条件的累计消费金额30万元），其中在一家贷款经办机构可享受单笔5万元以下的个人消费贷款累计贴息上限为1000元（对应符合条件的累计消费金额10万元).
According to the plan, six large state-owned commercial banks, 12 national joint-stock commercial banks, and five other personal consumption loan issuers are eligible to process interest subsidy loans. Local fiscal departments are encouraged to provide interest subsidy support to other financial institutions operating personal consumption loans based on actual circumstances, expanding the coverage of the policy. 根据方案，6家国有大型商业银行、12家全国性股份制商业银行和5家其他个人消费贷款发放机构可经办贴息贷款。鼓励地方财政部门结合实际情况对其他经营个人消费贷款业务的金融机构给予财政贴息支持，扩大政策覆盖面.
The plan requires relevant departments to strengthen oversight and control to ensure that interest subsidy funds are used for their intended purposes. If an audit reveals any violations of laws and regulations, the financial department will recover the relevant interest subsidy funds and deal with them seriously in accordance with the law. Relevant departments will hold loan processing institutions accountable for violations of laws and regulations. Borrowers who illegally and irregularly embezzle interest subsidy funds will have their information included in their personal credit records. 方案要求相关部门强化监督约束，确保贴息资金专款专用。经审核发现存在违法违规行为的，财政部门将追回相关贴息资金，并依法依规严肃处理。对于贷款经办机构违法违规行为，由相关部门依法依规追究相应责任。对于借款人违法违规套取贴息资金的情况，由贷款经办机构纳入个人征信记录.
In addition to this, the Ministry of Finance and nine other departments have recently jointly issued the ‘Implementation Plan for the Loan Interest Subsidy Policy for Service Industry Operators.’ This clearly stipulates that fiscal interest subsidies will be provided to eligible service industry operators in the consumer sector.
According to the plan, loans that meet the following conditions are eligible for the interest subsidy policy:
First, the loan must be issued by the handling bank to service industry operators in eight consumer sectors: catering and accommodation, healthcare, elderly care, childcare, housekeeping, culture and entertainment, tourism, and sports.
Second, the loan contract must be signed and the relevant loan funds must be disbursed to the operator between the date of the public release of the ‘Special Action Plan to Boost Consumption’ (March 16, 2025) and December 31, 2025.
Third, the loan funds must be used in accordance with legal regulations to improve consumer infrastructure and enhance service supply capabilities. Private non-corporate elderly care service institutions will also be eligible for the loan interest subsidy policy. After the policy expires, the policy period may be extended and the scope of support expanded based on its effectiveness.
根据方案，同时符合以下条件的贷款可享受贴息政策：一是由经办银行向餐饮住宿、健康、养老、托育、家政、文化娱乐、旅游、体育8类消费领域服务业经营主体发放。二是在《提振消费专项行动方案》公开发布之日（2025年3月16日）至2025年12月31日期间签订贷款合同且相关贷款资金发放至经营主体。三是贷款资金合规用于改善消费基础设施和提升服务供给能力。民办非企业法人的养老服务机构同等享受贷款贴息政策。政策到期后，可根据实施效果研究延长政策期限、扩大支持范围。
“As per the plan, 21 national banks will handle central government interest subsidies for loans issued to service industry operators. For loans issued by these banks, the financial department will subsidise the principal amount of the loan. The subsidy period will not exceed one year, with an annual subsidy rate of 1 percentage point. The central government and provincial governments will cover 90% and 10% of the subsidy funds, respectively. The loan scale that a single unit can enjoy interest subsidies for can reach up to 1 million yuan at maximum. These loans include fixed asset loans for improving consumer infrastructure and working capital loans for enhancing service provision. The same loan must not repeatedly enjoy other interest subsidy policies from the central government; for those that have already enjoyed related interest subsidy policies from local governments, this interest subsidy must not exceed the actual interest rate level after deducting existing subsidies.” 根据方案，中央财政给予贴息的服务业经营主体贷款经办银行为21家全国性银行。对于经办银行向服务业经营主体发放的贷款，财政部门按照贷款本金对经营主体进行贴息，贴息期限不超过1年，年贴息比例为1个百分点，中央财政、省级财政分别承担贴息资金的90%、10%。单户享受贴息的贷款规模最高可达100万元。相关贷款包括用于改善消费基础设施的固定资产贷款以及用于提升服务供给能力的流动资金贷款。同一笔贷款不得重复享受中央财政其他贴息政策；已享受地方财政相关贴息政策的，此次贴息不得超出扣除已有贴息后的实际利率水平.
The plan requires strict control over the flow of funds. Business entities must ensure that loan funds are used to conduct compliant operations, enhance service provision, and improve consumer infrastructure. It is strictly prohibited to make false reports, fraudulently claim, appropriate through deception, withhold, divert, misappropriate, or embezzle loan funds. Using loan funds for arbitrage activities such as real estate development, investment, and wealth management is strictly prohibited. It is strictly prohibited for handling banks and business entities to fraudulently obtain interest subsidy funds. 方案要求严控资金流向。经营主体要确保将贷款资金用于开展合规经营活动、提升服务供给能力、改善消费基础设施，严禁虚报、冒领、套取、截留、挤占、挪用贷款资金，严禁将贷款资金用于房地产开发或投资、理财等套利活动。严禁经办银行和经营主体套取贴息资金.
Next, there’s a report on private sector investment in China. It says that:
In the first half of this year, private investment in projects excluding real estate development grew by 5.1% year-on-year, demonstrating strong resilience.
In H1, private investment in manufacturing grew by 6.7%, with particularly strong growth in sub-sectors such as automobile manufacturing and specialized equipment manufacturing.
Another report talks about China’s auto sector. It says:
“From January to July, automobile production and sales reached 18.235 million and 18.269 million units, respectively, up 12.7% and 12% year-on-year, with the growth rates of production and sales increasing by 0.2 and 0.6 percentage points, respectively, compared to the January-June period. Of these, new energy vehicle production and sales reached 8.232 million and 8.22 million units, respectively, up 39.2% and 38.5% year-on-year, respectively. New energy vehicle sales accounted for 45% of total new vehicle sales. From January to July, 1.308 million new energy vehicles were exported, a year-on-year increase of 84.6%.
Page 4: There’s a report (English report) informing that:
“China has issued a trial set of regulations for managing infectious disease outbreak early warnings, aiming to standardize and guide related work, guard against public health risks, and protect people's lives and health. Consisting of four sections with 19 articles, the trial rules, released by the National Disease Control and Prevention Administration, outline key components such as the scope and definitions, key procedures and operating mechanisms, and safeguard regulations. The regulations mandate early warnings for public health threats arising from notifiable diseases, emerging infectious diseases, illnesses of unknown cause, and other high-risk infections. Such risks require alerting potentially affected populations, and relevant departments and institutions should take precautionary measures in advance, per the regulations. The rules also require disease control institutions at all levels to collect surveillance data, conduct risk assessments, identify possible public health threats, and determine epidemic risk levels, which should be classified into four tiers. Detailed standards for risk classification will be formulated separately.”
Page 15: There are reports talking about the easing of non-tariff measures against American companies. Basically this report explains:
“Commenting on a media query about the export control list, as the China-US Joint Statement in Stockholm stated that China will take or maintain necessary measures to suspend or remove non-tariff countermeasures against the US, a Ministry of Commerce (MOFCOM) spokesperson said on Tuesday that MOFCOM had issued Announcements No. 21 and No. 22 on April 4 and April 9, 2025, adding 28 US entities to the export control list and prohibiting the export of dual-use items to them in accordance with relevant export control laws and regulations. To implement the consensus reached at the China-US high-level economic and trade talks, effective August 12, 2025, measures targeting 16 US entities listed on April 4 will remain suspended for 90 days, while measures against 12 US entities listed on April 9 will be terminated. The spokesperson added that exporters wishing to supply dual-use items to these entities must apply to MOFCOM under the relevant export control regulations. Applications will be reviewed according to law, and permits will be granted to those meeting the requirements.”