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Beijing aims to boost domestic demand, target 60 trillion yuan in retail sales by 2030
China has unveiled its first-ever five-year plan dedicated exclusively to boosting domestic consumption, marking a strategic shift as the world’s second-largest economy looks to strengthen internal demand and reduce reliance on external factors for growth.
The plan, covering the 2026-30 period, sets an ambitious target of raising total retail sales of consumer goods to around 60 trillion yuan (around $8.8 trillion) by the end of the decade. The move comes after retail sales crossed the 50 trillion yuan mark for the first time in 2025, highlighting the growing importance of consumption in driving economic expansion.
Analysts say the initiative represents an important upgrade in China’s macroeconomic planning framework, as it is the first time a standalone blueprint has been formulated solely to expand consumption. Previously, consumption-related goals were embedded within broader national five-year plans as secondary priorities.
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“This marks a breakthrough in top-level economic design,” said Fu Yifu, a researcher at Jiangsu Su Merchants Bank, adding that the plan reflects Beijing’s intent to place consumer demand at the centre of its growth strategy.
Officials say consumption already contributed 52% to China’s GDP growth in 2025, but its full potential remains untapped due to structural challenges such as high household savings and an investment-heavy growth model.
To address these issues, the plan outlines 28 key tasks across six major areas, including boosting household income, improving the social security system, and enhancing the overall consumer environment. Measures include stabilising employment, raising minimum wages, and increasing property income channels to strengthen purchasing power.
The government also aims to reduce precautionary savings by expanding public spending on healthcare, education and elderly care, thereby easing financial burdens on households and encouraging spending.
An important feature of the plan is its focus on improving quality of life through targeted consumption in sectors such as elderly care, childcare, culture, tourism, and health services. Authorities say these efforts are designed not only to stimulate economic activity but also to enhance public welfare.
Service consumption is expected to play a central role in this transition. The plan calls for increasing the share of per capita spending on services, reflecting changing consumer preferences and a shift towards a more mature consumption structure.
Recent trends suggest this shift is already underway. China’s tourism sector, for instance, grew by 9.9% in 2025 — more than double the global average — driven by rising demand for lifestyle and experience-based travel.
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This transformation is particularly visible in cities such as Wanning in Hainan province. Once known primarily for surfing, the coastal destination now offers a range of activities, including fitness tourism, paddleboarding and cycling, attracting a younger demographic. In the first half of 2026 alone, Wanning recorded more than 6.3 million tourist visits, with a majority participating in sports-related activities.
The plan also emphasizes improving the inbound consumption environment by expanding visa-free access, increasing international flight routes, and streamlining tax refund procedures for foreign visitors. Initiatives such as “Shopping in China” aim to position the country as a global retail destination.
Experts say the implications of the policy extend beyond China’s borders. By strengthening domestic demand, Beijing could reshape global trade dynamics and create new opportunities for international businesses.
Chi Fulin, president of the China Institute for Reform and Development, estimates that aligning China’s share of global consumption with its manufacturing output could add at least $10 trillion to the global consumer market by 2035.
Similarly, Zou Jiayi, president of the Asian Infrastructure Investment Bank, said a consumption-driven growth model would support more balanced trade and stronger import-export dynamics, while also enabling China to contribute more significantly to global economic stability.
The plan has already boosted confidence among multinational companies operating in China. Business leaders say the focus on consumption, particularly in sectors such as health, lifestyle and technology, is creating new avenues for growth.
Industry observers say Chinese consumers are increasingly prioritising quality, design and experience over price, signalling a broader shift in market behaviour.
While challenges remain, including structural imbalances and income disparities, policymakers appear committed to sustaining momentum through coordinated reforms and long-term planning.
As China enters what officials describe as the “full-scale construction” phase of its 15th Five-Year Plan, the consumption-focused blueprint is expected to play a pivotal role in shaping the country’s economic trajectory in the years ahead.