Blueprint to boost consumption unveiled

China has unveiled its first five-year blueprint dedicated to boosting consumption, signaling a strategic shift toward making household spending a stronger engine of economic growth as the world's second-largest economy seeks to build a more resilient and demand-driven economy by 2030, experts and business executives said.

The plan, approved by the State Council, China's Cabinet, and released on Monday, said China's retail sales of consumer goods were expected to reach around 60 trillion yuan ($8.85 trillion) by 2030, while the household consumption rate is set to rise markedly.

The target figure follows China's retail sales of consumer goods reaching 50.1 trillion yuan in 2025, crossing the 50-trillion-yuan mark for the first time, data from the National Bureau of Statistics showed.

Jointly formulated by the National Development and Reform Commission and the Ministry of Commerce, the plan maps out key priorities for boosting consumption during the 15th Five-Year Plan (2026-30) period, including expanding services consumption, promoting the upgrading of goods consumption and fostering new consumption formats, models and scenarios.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said that consumption needs to play a more prominent role as a driver of growth as China pursues high-quality development.

Echoing that view, Huang Yiping, dean of Peking University's National School of Development, said in late June that China has continued to make progress in rebalancing its economy despite mounting challenges, but stronger efforts are still needed to expand domestic demand.

"China needs to boost consumption, and it needs to do so in a more proactive way," Huang said.

Zhou said the latest plan would enhance policy continuity, laying the foundation for sustained efforts to boost consumption and create a more supportive environment for household spending in the years ahead.

As China's first five-year blueprint dedicated specifically to boosting consumption, the plan places strong emphasis on enhancing household spending power through high-quality and full employment, steady income growth, and a more robust and sustainable social security system.

Dai Mingfeng, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the plan goes beyond conventional consumption-promotion measures by establishing a comprehensive policy framework spanning supply-side improvements and the consumption environment.

Meanwhile, the plan calls for expanding services consumption in areas such as elderly care, childcare, healthcare, culture, tourism, sports and education. It also outlines measures to nurture new growth drivers by accelerating the development of digital, green, experiential and inbound consumption.

The policy direction has also resonated with multinational companies, reinforcing their confidence in the Chinese market and commitment to long-term growth in the country.

Winnie Ma, president for the APAC Region at VF Corporation, a global apparel and footwear company, said that efforts to expand domestic demand are helping bolster consumer confidence and create broader opportunities for multinational companies, particularly as demand grows for health, outdoor and lifestyle-related products and experiences.

Similar shifts are also reshaping demand in the technology sector. Wolf Jiang, vice-president of Logitech, said Chinese consumers are increasingly looking beyond price and placing greater value on quality, performance, design and user experience.

Contact the writers at zhangchenxu@chinadaily.com.cn