Targeted Measures to Stimulate Consumption in China

Consumers explore festive products in Nanjing, Jiangsu province, showcasing a thriving consumer environment.

China is set to introduce a series of specific measures aimed at enhancing consumption and directly benefiting its citizens. This strategy comes in response to recent discussions among policymakers, emphasizing the importance of fostering domestic demand, particularly in light of ongoing global uncertainties.

During the Central Economic Work Conference held in mid-December, the promotion of consumption emerged as the foremost priority for government policy measures in 2025, for the world's second-largest economy.

According to He Yongqian, a representative from the Ministry of Commerce, the foundational economic conditions supporting China’s growth remain intact. The consumer market is expected to maintain a steady upward trajectory over the upcoming year. She noted that improving consumption levels and enhancing citizens' quality of life will be pursued in tandem.

In pursuit of this goal, the ministry, in collaboration with relevant departments, plans to broaden the array of consumer products included in trade-in initiatives. This approach will allow more households to engage with and benefit from these programs.

Data indicates that the trade-in policy has catalyzed over 1 trillion yuan (approximately $137 billion) in sales of related products. As of December 13, consumers have benefited from this initiative through the purchase of over 5.2 million passenger vehicles and more than 49 million units of household appliances.

The demand for more advanced, energy-efficient, and high-tech products has enabled trade-in programs to flourish, remarked Wen Bin, the chief economist at China Minsheng Bank. While urban residents have initially driven the growth of these programs, abundant opportunities lie within rural markets, where the demand for upgraded household appliances and durable goods remains largely untapped.

Additionally, authorities will implement various policy measures to foster high-quality development in the services sector. He highlighted that consumers are increasingly attracted to services that provide emotional satisfaction and meaningful experiences, including cultural activities, tourism, sports, and health-related leisure.

Recent statistics reveal that service consumption among Chinese residents increased by 7.6 percent year-on-year in the first three quarters, significantly outpacing the overall rise in per capita consumer expenditure, which stood at a 2 percentage point increase. The National Bureau of Statistics noted that the share of service expenditure in total household consumption rose by 0.9 percentage points from last year, now accounting for 47 percent of total consumer spending.

Looking forward, it will be crucial to reduce barriers for foreign investments in critical sectors such as telecommunications and healthcare. This will create opportunities for international players to enhance service offerings and meet the diverse needs of consumers, according to researcher Chen Lifen from the Development Research Center of the State Council.

Consumption, Economy, China