China has rolled out more than 2 billion yuan ($289 million) in consumer incentives to boost spending during the Spring Festival holiday, as the country steps up efforts to expand domestic demand and sustain economic momentum.

At a press conference held by the State Council Information Office on Wednesday, Vice Commerce Minister Sheng Qiuping said the Ministry of Commerce, together with nine other government departments, has launched a nationwide Spring Festival consumption campaign named "Happy Shopping for the Chinese New Year."

The program will offer a three-part package of benefits – trade-in subsidies, invoice lottery rewards and financial support – for creating a vibrant holiday shopping season across cities as well as rural areas.

Sheng said local governments have already earmarked 2.05 billion yuan in funding, which will be distributed over the nine-day holiday through consumer vouchers, subsidies and "red envelope" giveaways, directly benefiting shoppers.

Nationwide campaign targets both urban and rural consumers

According to Sheng, the initiative is designed to break through traditional regional boundaries. Led by commerce authorities, it has mobilized dozens of national business associations and brought together commercial streets, shopping districts, markets and retail outlets across the country.

Rather than a simple promotion drive, Sheng described the campaign as a nationwide holiday celebration intended to ensure consumers – whether in major city malls or county-level markets – can enjoy a festive shopping atmosphere.

The program also aims to cover the full range of holiday spending, providing "one-stop" support for food, accommodation, transport, travel, shopping and entertainment.

Restaurants are being encouraged to roll out Chinese New Year's Eve dinner packages and reunion banquets. Retailers in home furnishing and household appliances are rolling out discounts, while hotels and homestays are offering holiday bundles.

To support holiday travel, aviation and railway operators are expanding capacity, and airlines are introducing special Spring Festival meal services. On the leisure side, authorities are increasing cultural offerings by supporting temple fairs, intangible cultural heritage performances and other traditional activities.

Meanwhile, pedestrian streets, shopping malls and rural Spring Festival markets have been asked to ensure sufficient supplies of holiday goods and launch promotional campaigns.

Subsidies and lottery rewards 

To ensure consumers see tangible savings, the government is backing the campaign with significant fiscal support.

Sheng said the Ministry of Commerce, the Ministry of Finance and the State Taxation Administration have selected 50 cities for a pilot invoice lottery program. During the six-month trial period, the program will distribute up to 10 billion yuan in rewards, with more than 1 billion yuan expected to be issued during the Spring Festival holiday alone.

Consumers in pilot cities who obtain invoices worth over 100 yuan from shopping, dining, tourism or accommodation will be eligible to enter prize draws. The maximum prize for the invoice lottery is 800 yuan.

In addition, the Ministry of Commerce, together with the National Development and Reform Commission and the Ministry of Finance, has allocated an initial 62.5 billion yuan in national subsidies for consumer goods trade-ins. The funds have already been delivered to local commerce departments, and authorities will guide regions to expand subsidy distribution during the holiday to ensure eligible consumers can claim benefits smoothly.

The campaign also targets inbound consumption as China continues to promote tourism and international shopping. 

Sheng said around 13,000 tax-refund stores nationwide have prepared a wide range of products for overseas travelers. Foreign visitors will be able to enjoy not only vouchers and invoice lottery participation, but also additional discounts through tax-refund policies, with savings of up to 10 percent.

Consumption remains key pillar of China's growth strategy

The Spring Festival campaign comes as China continues to prioritize consumption-led growth amid a complex domestic and external environment.

Official data shows that in 2025, China's total retail sales of consumer goods exceeded 50 trillion yuan for the first time, while final consumption expenditure accounted for 52 percent of economic growth, up five percentage points from the previous year.

The results were driven by three major trends: expanding and upgrading goods consumption, improving service-sector spending, and a surge in tax-refund shopping fueled by visa facilitation and improved refund policies.

Trade-in programs helped generate 2.61 trillion yuan in sales, benefiting more than 366 million consumer transactions. Service retail sales grew 5.5 percent as new business models and consumption scenarios gained traction, while sales of tax-refund goods jumped 95.9 percent year on year.

Officials said the 2026 "Happy Shopping for the Chinese New Year" campaign is expected to build on last year's momentum and further implement China's broader strategy of expanding domestic demand and strengthening the internal market.