High-quality development remains the cornerstone of China’s economic priorities for 2025, with a strategic focus on expanding domestic demand and stabilizing employment. This blueprint emerged from the annual Central Economic Work Conference held in Beijing on December 11 and 12.
The foundation for this strategy was laid in September when the Political Bureau of the Central Committee of the Communist Party of China reaffirmed its commitment to advancing reform and opening up, fostering domestic demand, and optimizing economic structures.
The meeting underscored the importance of intertwining consumer-driven growth with enhancements in public welfare. By increasing incomes for low- and middle-income households and upgrading consumption patterns, China aims to stimulate economic vitality. The leadership also emphasized the need to nurture new consumer formats, protect basic livelihoods, and focus on employment opportunities for young people, rural migrants, and recent graduates.
Since then, a series of targeted policies have been implemented to construct a resilient and inclusive economic ecosystem. The goal is to invigorate economic development and inject fresh momentum into growth by reinforcing the twin pillars of domestic demand expansion and employment stabilization.
Consumption serves as a critical link between economic development and people’s livelihoods. In the first three quarters of 2024, total retail sales of consumer goods reached an impressive 35.36 trillion yuan, representing a year-on-year growth of 3.3 percent. This steady upward trend highlights the effectiveness of policies designed to expand domestic demand and stimulate consumption, showcasing the resilience of China’s vast market and the untapped potential for growth.
To enhance consumption, policies were introduced in March and July to accelerate the replacement of outdated consumer goods with new ones. The State Council issued guidelines for high-quality development of service consumption, and measures were released to create new consumption scenarios and cultivate new growth points in consumption.
Local governments have tailored these policies to reflect regional needs, expanding the range of subsidized products, increasing subsidies, simplifying application procedures, and boosting consumer enthusiasm.
Consumption promotion activities have also yielded impressive results. In November, the Ministry of Commerce partnered with five international consumer center cities—Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing—to launch the China International Consumer Center City Quality Consumption Month in Shanghai.
Collectively, these cities account for over 13 percent of national retail sales, host 32 percent of China’s time-honored brands, and facilitate more than 50 percent of consumer goods imports. The initiative showcased their leadership role in driving consumption and fostering innovation.
The month-long event aimed to enhance the consumption structure through dynamic activities, with innovation in consumption scenarios and formats to unlock greater market vitality and elevate consumer confidence.
While consumption remains a key driver of growth, employment stabilization is the other critical pillar of China’s economic strategy. In the first quarter of 2024, over 10 million new urban jobs were created, reducing the surveyed urban unemployment rate to 5.1 percent in September—a 0.2 percentage point drop from the previous month.
By focusing on both expanding domestic demand and stabilizing employment, China is reinforcing its economic foundation and paving the way for sustainable, high-quality development in the years to come.
Reference(s):
cgtn.com
