China's Ministry of Commerce has launched a comprehensive plan to accelerate domestic consumption growth in 2026, leveraging new economic models and regional development strategies. Minister Wang Wentao announced the initiative during the ongoing National People's Congress session, emphasizing its role in strengthening China's position as a global consumption leader.
Retail Transformation Drives Strategy
With total retail sales exceeding 50 trillion yuan ($6.9 trillion) and service consumption growing at 10.4% annually since 2022, the plan focuses on three key areas: product upgrades through a 250 billion yuan trade-in program, expansion of experiential service sectors, and activation of lower-tier markets containing 70% of China's population.
Tech-Driven Consumption Models
Pilot programs in 50 cities will test immersive retail concepts and debut economy initiatives, where brands launch products through exclusive platform experiences. Beijing leads these trials with central government funding, blending technology with cross-sector collaborations.
Regional Development Focus
"Our county-level markets represent 60% of GDP but remain underdeveloped," Wang stated, outlining tailored policies for smaller cities. The strategy identifies six core service sectors for expansion, including automotive aftermarkets and cultural tourism, plus three emerging areas: live performances, sports events, and premium lifestyle services.
