The Chinese government provides a one-time financial assistance to individuals living in extreme poverty.

• The Chinese government declared that it would provide a one-time financial aid to individuals living in extreme poverty.
• This week, the PBOC introduced a package of economic support measures.

The Chinese government declared that it will provide a one-time cash payment to individuals living in extreme poverty, following the central bank's announcement of stimulus measures to support the economy.

The Chinese government will provide subsidies to extremely poor people, orphans, and other needy individuals on the occasion of the 75th anniversary of the founding of New China. The subsidies will be distributed before China's National Day on Oct. 1 to convey the Party and government's care and concern for the needy. The report did not specify the size of the allowance or any further details.

Xi Jinping and the CPC are intensely focused on supporting low- and middle-income Chinese through his common prosperity drive, as Shaun Rein, founder of China Market Research Group, stated in an interview with CNBC.

In the 1950s, Mao Zedong introduced the idea of common prosperity. This concept was recently revived by the Chinese government in 2021 to promote moderate wealth for all.

In November 2020, 40.4 million individuals in China received subsistence allowances, with the average urban allowance being 779 yuan ($110.80) per person monthly, and rural subsistence being 615 yuan per person.

On Tuesday, China's vice minister of human resources and social security announced that the country has the largest social security network in the world. He stated that the number of people enrolled in basic old-age insurance, unemployment insurance, and work-related injury insurance has reached 1.07 billion, 245 million, and 301 million, respectively.

Xi Jinping, the Chinese president, supports common prosperity, but it is rare to use one-time handouts in such a short period.

Unlike other governments such as the U.S. and Europe, China did not provide cash subsidies to households and enterprises during the Covid pandemic, according to Huang Yiping, a key member of the Chinese central bank, in an August article.

Weak economic data has hit China's economy hard, with more people choosing to save rather than spend, resulting in low consumption and retail sales figures.