China plans to cultivate three trillion-yuan consumer sectors by 2027: officials

China's latest action plan to promote consumption aims to increase the resilience of the second largest consumption market in the world, an official from China's Ministry of Industry and Information Technology (MIIT) stated on Thursday.

The action plan, unveiled by MIIT and other five departments on Wednesday, maps out key measures to better align the supply and demand for consumer goods and further stimulate consumption. 

It includes building three different trillion-yuan ($141.25 billion) consumer sectors and 10 separate 100-billion-yuan consumption hotspots by 2027. 

The plan also outlines that by 2030, the contribution rate of consumption to economic growth will be steadily increased.

The targeted high-growth areas include elderly care products, smart vehicles, and consumer electronics, as part of a broader drive to upgrade supply and expand demand.

High-quality supply enters a new stage

China's consumer goods supply has entered "a new stage of higher quality and better value," said MIIT's vice minister Xie Yuansheng. He noted that China now offers 230 million types of consumer goods, with rapid expansion in smart home devices, wearables, humanoid robots and drones. Product reliability has improved, with daily-use goods maintaining high inspection pass rates and over 96 percent of major items meeting international standards.

Xie added that domestic brands are becoming more competitive, supported by strong momentum in elderly care products, intelligent connected vehicles and consumer electronics, as well as fast-growing segments such as smart wearables, cosmetics, outdoor gear, pet supplies, civilian drones, trendy collectibles and "guochao" fashion.

With 515 million generative AI users nationwide, the ministry will also push AI integration into consumer goods through new product development and application scenarios.

Infrastructure and circulation reforms to support demand

In China, there has been a shift in focus among consumers from the existence of consumer goods to their quality, observed by Wu Yuetao, an official from National Development and Reform Commission (NDRC) on Thursday.

People's need for a better life also calls for higher-quality consumer goods supply and more diversified consumption scenarios, Wu stressed, unveiling that the top economic planner will further enhance the quality level of supply and promote high-quality consumer goods to enter consumers' lives.

Wu also highlighted strong growth in the country's charging network. As of the end of October, China had 18.65 million EV charging connectors, up 54 percent year-on-year. 

It will accelerate parking infrastructure upgrades in key regions and advance pilot reforms to expand automobile circulation and consumption across the entire value chain, according to Wu.

Boosting international consumption hubs and "first-launch" economy

China's outbound shopping and tourism have remained strong as visa-free arrangements and improved tax-refund services take effect, said Yang Nie, an official from the Ministry of Commerce. From January to September, sales of tax-refunded goods for departing travelers nearly doubled year-on-year.

Going forward, the commerce ministry will deepen the development of international consumption center cities, support pilot programs for building globalized shopping environments, and help cities expand high-quality goods and services. 

Yang said the ministry will also actively promote the "first-launch economy," encouraging companies to release new products, open first stores and host first shows to energize the market.

Cultural and tourism consumption remains vibrant

There is strong demand for "guochao" cultural products and intangible cultural heritage merchandise, with many items gaining popularity for their creativity and immersive experience, noted Miu Muyang, an official from the Ministry of Culture and Tourism. The ministry will support more high-quality cultural and tourism products entering the market.

Strengthening consumer safety protections

The State Administration for Market Regulation (SAMR) pledged to continue strict and rapid enforcement actions to safeguard consumer product safety. Ji Xiaoling, inspector with the SAMR, said they will enhance whole-chain traceability systems to ensure high-quality supply and protect consumer rights.

(Cover via VCG)