CICPE to decode China's consumption upgrade

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

From April 13 to 18, the sixth China International Consumer Products Expo (CICPE) is taking place in China's Hainan Province. As the "first exhibition" of China's major exhibitions in the opening year of the 15th Five-Year Plan period (2025-2030) and the "first show" after the full island-wide expansion of Hainan Free Trade Port (FTZ), this year's CICPE has gathered more than 3,400 brands from over 60 countries and regions, with international exhibits accounting for 65%, an increase of 20 percentage points from the previous session, making it the best window to observe China's consumption upgrade. 

The expo showcases new changes in supply and demand, as well as new linkages between domestic and international markets, which not only outline the structural landscape of China's consumption upgrade but also reveal its underlying driving forces, highlighting the global influence and resilience of China's consumer market.

CICPE: A window to China's consumption upgrade

China's consumption upgrade has shifted from scale expansion to quality improvement, with distinct structural features fully reflected in the CICPE's exhibition layout. Covering core areas such as technological consumption, fashion trends and health consumption, the expo aligns with the main trends of China's current consumer market.

Technological consumption has become the core engine of upgrade. The CICPE's "technological consumption hall" gathers leading global enterprises, displaying cutting-edge fields such as AI+ consumption, smart homes and the low-altitude economy.

The launch of artificial intelligence (AI) products and flying cars indicates that AI has been deeply integrated into daily life, while the low-altitude economy has moved from concept to practice. This responds to Chinese consumers' growing demand for intelligence and convenience.

Quality and cultural consumption are increasingly integrated, with domestic trend brands and international high-quality products empowering each other. The CICPE has set up a "domestic trend brands area," showing characteristic products from across China, and a 100% international "global characteristic consumption area." Both intangible cultural heritage works, combining tradition and modern design, and international leading brands have made appearances, reflecting the maturity of China's consumer market where consumers value both domestic cultural heritage and international quality.

Health and green consumption have become new hotspots. The health consumption hall displays a variety of health products and interactive experience areas, promoting consumers’ shift towards healthy lifestyles. Meanwhile, new energy vehicles and green home appliances exhibited echo the global low-carbon trend, reshaping the value orientation of the consumer market.

Driving forces: Internal-external circulation and policy innovation

The underlying driving forces of consumption upgrade lie in the benign interaction of internal and external circulation and policy innovation, both of which are clearly demonstrated at the CICPE, which has realized two-way efforts of "bringing in" and "going out."

On the one hand, "bringing in" activates domestic consumption vitality. The guest country of honor and many other countries participate on a large scale, with their new products and technologies enriching domestic supply and promoting domestic enterprises to innovate by benchmarking international standards. 

On the other hand, the newly added "domestic trend brands going global area" helps Chinese brands enter the global market with Hainan FTZ's policy advantages, making China's consumer market a stabilizer for global consumption growth.

Hainan FTZ's special customs operations dividends provide institutional guarantees for smooth internal and external circulation. Hainan is building a multi-level duty-free consumption system, promoting duty-free consumption from specific scenarios to daily life. Policy innovations such as the jewelry duty-free zone improve the consumer experience and reduce the cost for international brands to enter China, attracting more foreign investment.

Policy innovation is an important guarantee for consumption upgrade. China adheres to the dual drive of policies and activities to release consumption vitality. At the national level, relevant policies promote the quality improvement of durable goods consumption; at the local level, the Hainan FTZ launches integrated consumption scenarios to expand new growth points. In addition, policies optimizing the consumption environment and ensuring fairness lay a solid foundation for upgrade.

Future outlook: Development direction and global value

The CICPE helps us judge the future of China's consumer market, which will show three main trends: accelerated intelligent and digital transformation, improved supply-demand matching, and green and healthy consumption as a consensus. These trends will promote the continuous upgrading of the consumer market and industrial restructuring.

Globally, China's consumer market is transforming from a global consumption destination to a leader. The large-scale participation of international brands in the CICPE demonstrates its global attractiveness. China's ultra-large market not only provides broad space for global brands but also guides their research and development direction. Through the CICPE, China offers a "Chinese solution" for global consumption recovery, with its stable consumption growth becoming an important engine for global economic recovery.

Although China's consumption upgrade faces some challenges, the CICPE's vitality and potential show these will be gradually resolved. As a weathervane for consumption upgrade, the CICPE is witnessing China's consumption transformation from quantity accumulation to quality leap. In the future, China's consumer market will continue to release potential, boosting domestic economic growth and global consumption recovery.

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