Incentives Including Electronic Consumer Coupons and Corporate Subsidies to Prevent COVID-19 Spread
Shanghai Railway Station bustling with travelers during the Chinese holiday period. [Photo by Yonhap News]
[Asia Economy Reporter Kim Junran] As COVID-19 infections rapidly spread across China, various measures encouraging people to forgo returning home during the upcoming Spring Festival (Chinese New Year, January 22) holiday are being implemented throughout the country. The aim is to persuade migrant workers from other regions to stay and work instead of traveling home.
According to the China Youth Daily on the 28th, Hangzhou City in Zhejiang Province encouraged migrant workers from outside Zhejiang to remain at production sites during the Spring Festival holiday at an economic policy-related press conference held the previous day. It was also explained that those who forgo returning home could receive incentives such as electronic consumption coupons and subsidies for companies.
Hangzhou City decided to provide a one-time subsidy of 500 yuan (approximately 91,000 KRW) per migrant worker who does not return home during the Spring Festival to companies that continue production during the holiday. Additionally, the city plans to directly offer consumption coupons worth 600 yuan (approximately 110,000 KRW) to migrant workers who stay and work.
Shanghai is also encouraging workers to remain in Shanghai during the Spring Festival. The Shanghai Municipal Government Office announced specific support measures for migrant workers during the Spring Festival on the 24th. For e-commerce and courier industries within the city that meet certain conditions, a subsidy of 60 yuan (approximately 11,000 KRW) per worker per day has been provided from the 25th until January 27th, with the amount increasing to 150 yuan (approximately 27,000 KRW) during the year-end and Spring Festival periods.
Furthermore, according to the Southeast Morning Post on the 26th, Quanzhou City in Fujian Province is also supporting corporate production activities during the Spring Festival. Employees who do not return home and stay during the holiday will receive an incentive of up to 3,000 yuan (approximately 550,000 KRW).
The reason major regions are encouraging people to forgo returning home is interpreted as a measure to prevent the spread of COVID-19 infections, especially among the elderly in rural areas where medical response capabilities are weak during the Spring Festival. Since next year’s Spring Festival will be the first holiday after China’s transition to a 'with COVID' policy, there are concerns that the massive movement of people, particularly to rural areas, could trigger uncontrollable infection spread.
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