China to continue expanding domestic demand, boosting consumption in 2026

China will continue to expand domestic demand and boost consumption in 2026, Lou Qinjian, spokesperson for the fourth session of the 14th National People's Congress (NPC), said at a press conference on Wednesday.

"Consumption is the primary engine driving economic growth," Lou said, adding that China will take strong steps to stimulate consumption and accelerate the building of a robust domestic market.

On the supply side, he said, the country will increase the provision of high-quality goods and services. Measures include implementing initiatives to upgrade service consumption and foster new growth drivers in the service sector, as well as optimizing trade-in programs for consumer goods to encourage product upgrades and replacement demand. China will also work to create a more internationalized consumption environment, diversify consumption scenarios, and organize the "Shopping in China" promotional campaign to further energize the market.

On the demand side, Lou stressed that improving people's livelihoods will be closely aligned with efforts to promote consumption. China will promote high-quality employment and roll out income growth plans for urban and rural residents to strengthen household purchasing power. It will also steadily advance equal access to basic public services and improve education, childcare, elderly care and healthcare systems, aiming to ease consumers' concerns and reduce obstacles to consumption.

Lou also reviewed achievements in boosting consumption in 2025. He said China implemented a series of actions to stimulate spending, resulting in steady expansion of the consumer market. Total retail sales of consumer goods surpassed 50 trillion yuan ($7.25 trillion) for the first time, while consumption accounted for 52% of overall economic growth.

He noted that China's consumption structure continued to upgrade, while service consumption gathered momentum, with retail sales of services rising 5.5%. Inbound consumption also increased markedly, Lou added. He noted that China expanded its visa-free entry policies and improved departure tax refund measures, leading to a near doubling of annual sales of tax-refunded goods for departing travelers.