BEIJING: A new plan to expand consumer spending unveiled on Sunday is expected to encourage consumption and drive economic growth in China. The country has maintained its position as the world’s second-largest consumer and the largest e-commerce market for over a decade. Data released on Monday shows that 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, 0.5 percentage points higher than the same period in 2024.
Despite the positive data, consumer confidence remains weak due to multiple factors, therefore, boosting consumption and expanding domestic demand remains imperative, Li Chunlin, deputy director of the NDRC, said at a press conference on Monday.
The plan consists of 30 policies across eight sections, the first seven of which outline specific actions for implementation, including demand-side initiatives such as income enhancement for urban and rural residents, and measures to support consumption capacities. On the supply side, the plan focuses on improving service quality, upgrading bulk consumption and enhancing consumption standards. The eighth section emphasizes the need to enhance supportive policies related to investment, finance, credit and statistics.
For the first time, the consumption support plan highlights the need to stabilize the stock and real estate markets.
Previous consumption policies focused primarily on the supply side, arguing that supply drives demand. However, the latest plan prioritizes the demand side as well, aiming to boost household incomes and ease financial burdens, Li noted, adding that the new measures include promoting reasonable wage growth and adjusting minimum wages. To enhance property incomes, the plan calls for a multifaceted approach, including the stabilization of the stock market, strengthened strategic reserves and market stabilization mechanisms, and the accelerated removal of barriers preventing long-term funds – namely, the commercial insurance funds, the national social security fund and the basic pension insurance fund – from entering the market.
To better meet housing consumption needs, efforts will focus on reversing the downturn and restoring the stability in the real estate market. Financial authorities have been encouraging medium and long-term funds to enter the capital market to further stabilize stock performance.
Since last year, Chinese policymakers have introduced a range of measures, including financial stimuli and regulatory adjustments, to bolster the property sector. These include mortgage rate cuts, decreased down payment requirements, eased purchasing restrictions and financing coordination mechanisms to enhance funding support for developers. –The Daily Mail-CGTN news exchange item
