By He Yin, People’s Daily
China recently unveiled a plan on special initiatives to boost consumption, a move that has captured global attention. International observers see this as a clear signal of China’s drive toward high-quality economic development and a fresh opportunity for global businesses to tap intoone of the world’s largest and most dynamic markets.
Analysts believe that the measures are more than just a short-term stimulus but are part of a broader strategy to accelerate the country’s transition to a consumption-driven economy – a shift expected to reignite demand in the world’s second-largest economy and set the stage for sustained economic growth.
Consumptionis the ultimate barometer of demand,essential not only for economic growth but for enhancing the everyday life of the Chinese people. The Chinese government has placed consumption at the center of its economic agenda.Both the 2024 Central Economic Work Conference and the 2025 Chinesegovernment work report have emphasized the need to vigorously boost consumption, improve investment efficiency, and expand domestic demand on all fronts.
To achieve these goals, the plan focuses onincreasing spending power by raising earnings and reducing financial burdens, generating effective demand through high-quality supply, and improving the consumption environment to strengthen consumer willingness to spend. It introduces measures to reinforce institutional support for consumption, unlock untapped market potential, and accelerate China’s shift toward a consumption-driven economy.
Global observers have lauded these measures as both visionary and pragmatic, laying a robust foundation for the long-term growth of China’s burgeoning consumption sector.
Following a people-centered approach, the plan outlines efforts to boost consumption and improve livelihoods – such as establishing a childcare subsidy system, elevating funding standards for college students, and enhancing support for consumer goods trade-in programs.
By combining direct financial support witha broader supply of diverse, high-quality consumer goods, the plan aims to meetthe real needs of Chinese households – increasing earnings, easing financial burdens, and ultimately bolstering consumer confidence and spending willingness.
The plan also seeks to cultivate new consumption drivers in emerging industries. Measures include leveraging artificial intelligenceand intellectual properties to spur e-commerce, while supporting sectors such as low-altitude tourism, aviation sports, and consumer drones. This targeted approach to technology-driven and differentiated consumption is expected to sustain economic momentum in the long run.
“The new plan seeks to develop a more sustainable consumption model, which they define as New Consumption,”according to the website of the Spanish daily newspaper El Economista.
China’s efforts to expand domestic demand will provide a broader platform for international engagement. As the world’s second-largest consumer market – and the largest online retail market for over a decade – China is turning its vast domestic demand into a significant global opportunity. With ongoing efforts to ease market access, refine consumption structures and drive growth in service consumption, the country is steadily unlocking new economic potential.
The country’s increasing imports of high-quality life services in healthcare, culture, and entertainment signal a broader effort to integrate its market with the global economy. At the same time, China has sought to strengthen integration between foreign and domestic trade by promoting high-quality imported goods and improvingits business environment.
Early indicators are promising: China’s retail sales of consumer goods, a major indicator of the country’s consumption strength, climbed 4 percent year on year in the first two months of 2025, and the consumer confidence index has rebounded for three consecutive months, according to latest data from the National Bureau of Statistics of China.
Consumer sentiment in China has seen a significant rebound compared to last year, a recent survey by Deutsche Bank AG has shown. The Peninsula Qatar notes that consumer sentiment in China has improved and this should spur more investments over the coming years, driving further growth.
China is making significant strides in high-quality economic development. With proactive macroeconomic policies, a comprehensive expansion of domestic demand, and an unwavering commitment to reform and opening up, China is well-positioned to sustain its economic recovery. These efforts will not only reinvigorate its domestic market but also inject positive momentum into global economic growth.
