China has unveiled comprehensive measures to strengthen domestic consumption as a cornerstone of its 2026 economic strategy, National People's Congress spokesperson Lou Qinjian announced this week. The plan aims to balance supply-side innovation with demand-side empowerment through coordinated policy actions.
On the supply front, authorities will accelerate service sector upgrades and implement nationwide trade-in programs for consumer goods. The "Shopping in China" campaign will promote high-quality products while enhancing international retail experiences through diversified consumption scenarios and streamlined tax refunds for foreign visitors.
Demand-side measures focus on increasing household purchasing power through urban-rural income growth initiatives and improved social safety nets. "By addressing concerns about education, healthcare, and elderly care, we enable residents to consume with greater confidence," Lou explained during Wednesday's press conference.
The announcement builds on 2025's consumption milestones, which saw retail sales surpass 50 trillion yuan ($7.25 trillion) with services spending growing 5.5%. Last year's visa policy relaxations and retail infrastructure improvements nearly doubled tax-free shopping revenue from international travelers.
Economists note this dual approach – stimulating both product innovation and consumer capability – positions domestic demand to maintain its 52% contribution to GDP growth. The strategy comes as China seeks to offset global market uncertainties through sustainable internal circulation mechanisms.
