China to Boost Consumption and Strengthen Domestic Market by 2026

China is set to prioritize the growth of domestic consumption as articulated during a recent press conference by the National People's Congress (NPC). These initiatives, aimed at bolstering the domestic market, will be implemented by 2026 with a clear focus on enhancing consumer-driven growth and spending.

At the Great Hall of the People in Beijing, spokesperson Lou Qinjian outlined strategies that will reinforce the momentum of China's consumer market. With last year's surge in popular products and media, including the animated film Ne Zha 2 and various consumer goods, the government is assessing these trends to catalyze further development this year.

Consumption, identified as the primary engine of economic growth, has shown significant resilience over the past year. Following a special initiative launched in 2025, total retail sales of consumer goods surpassed 50 trillion yuan or approximately 7.2 trillion dollars, accounting for 52 percent of economic growth.

Lou indicated that the structural evolution of consumption is notable, with improvements in trade-in programs benefitting a vast consumer base. Platforms such as the China International Import Expo continue to address the diverse needs of consumers, while sectors like culture and tourism have demonstrated particularly strong growth.

In terms of inbound consumption, recent policy changes such as an expanded visa-free policy and an improved tax-refund system have significantly enhanced the attractiveness of China's shopping and travel experiences. Notably, tax-refunded good sales for outbound travelers nearly doubled from the previous year, reflecting increased consumer confidence.

Looking ahead, the NPC is committed to sustaining the focus on expanding domestic demand. Key measures will include improving the availability of quality goods and services, enhancing service consumption, and launching campaigns such as "Shop in China" to foster an inviting shopping environment.

Lou further emphasized that linking well-being with consumption growth remains essential. Efforts will be made to promote high-quality employment and increase income levels among urban and rural residents, thereby strengthening their purchasing power and reducing hesitation around spending.

To ensure the confidence of consumers, additional reforms will aim at providing equitable access to essential public services, encompassing education, childcare, elderly care, and healthcare. These initiatives are designed to alleviate concerns about future expenditures.

The NPC Standing Committee is also gearing up to enact measures that will contribute to the establishment of a unified national market and enhance rural revitalization efforts. Legislative focus will include regulations on social assistance and medical security, ultimately seeking to redirect resources toward improving the quality of life.

As these strategic plans unfold, they are expected to foster a more robust domestic economic landscape, compelling Chinese consumers to not only regain confidence but also actively participate in the spending that drives the nation's economic engine.