China's National Development and Reform Commission (NDRC) announced a comprehensive strategy on Friday to stimulate domestic consumption and enhance market vitality, targeting sustained economic growth amid global uncertainties. Spokesperson Li Chao emphasized that while July saw fluctuations in some indicators, the broader trend of consumption expansion and investment optimization remains intact.
Retail sales of consumer goods grew 3.7% year-on-year in July, with combined goods and services retail sales rising approximately 5% in the first seven months of 2025. Li highlighted China's position as the world's largest physical consumer market but noted untapped potential in per capita spending, particularly in services.
Key Measures to Drive Growth
1. Employment and Income Stability: The NDRC plans large-scale vocational training programs to upskill workers, prioritizing college graduates and migrant workers. Minimum wage adjustment mechanisms will also be refined to bolster purchasing power.
2. High-Quality Supply Expansion: Policies will accelerate innovation in debut economies, digital consumption, and AI-integrated services. Sector-specific support for cultural tourism, sports events, and camping industries aims to diversify consumer options.
3. Consumer Environment Upgrades: Initiatives include building trusted service brands and creating family- and elderly-friendly consumption hubs to foster trust and accessibility.
These steps align with China's focus on balancing short-term economic resilience with long-term structural reforms, offering insights for investors and policymakers tracking Asia's evolving economic landscape.
