China sets out plans to boost consumption, expand domestic demand

China will vigorously stimulate consumption and expand domestic demand this year, positioning it as a key driver and stabilizing force for economic growth, according to a government work report submitted on Wednesday to the national legislature for deliberation.

Chinese Premier Li Qiang delivered the work report on behalf of the State Council at the opening meeting of the third session of the 14th National People's Congress in Beijing.

To achieve this, the government will roll out a series of targeted measures. These include launching special initiatives to boost consumption, unlocking diverse and differentiated consumption potential, and driving the upgrade and quality improvement of consumer markets. Efforts will also focus on increasing household income through multiple channels, particularly for middle- and low-income groups, while improving the wage growth mechanism for workers.

In a significant move, the government will issue 300 billion yuan ($41.3 billion) in ultra-long-term special treasury bonds to support the upgrading of old industrial equipment and household appliances.

Additionally, the supply of diversified services – such as healthcare, elderly care, childcare and home economics – will be expanded by relaxing market access, reducing restrictions and optimizing regulatory frameworks.

To further unleash consumption potential, the government plans to refine and optimize the vacation system, thereby boosting spending in culture, tourism and sports.

Other measures include improving duty-free shop policies to attract inbound consumption, advancing the development of international consumption center cities and strengthening the commercial infrastructure in county-level regions.

The government will also enhance the full-caliber consumption statistics system and strengthen consumer rights protection to create a safer and more reliable consumption environment.