China sets 19 point plan to lift spending across services, smart goods and the silver economy

Why Beijing is betting on consumption now

China has launched a wide plan to turn consumer spending into a stronger engine for growth. A new 19 point program from the Ministry of Industry and Information Technology and several other departments seeks to better match supply with changing demand and raise the role of consumption in gross domestic product by 2030. The plan names three sectors that should each reach the scale of one trillion yuan by 2027 and sets out ten additional hotspots that are expected to grow into one hundred billion yuan areas. Behind the targets is a simple aim, to give households and visitors more to buy, at prices and quality they trust, and to help companies build the products and services that meet those needs.

The timing reflects the economic picture. Household confidence has lagged amid a property downturn, lower inflation and weaker job growth in some regions. Exports are facing uncertainty as global demand slows and trade tensions persist. Policymakers are shifting focus to domestic demand through better income support, access to credit for families and firms, and sector by sector efforts in services, autos, technology, tourism and elderly care. The plan also aligns with earlier moves such as a sports industry target worth seven trillion yuan by 2030, trade in programs for home goods and electronics, and measures to ease travel rules for foreign visitors.

What the 19 measures set out to do

The 19 measures combine goals for higher quality supply with steps to raise spending power and improve the consumer environment. The national plan from the General Office of the Communist Party of China Central Committee and the General Office of the State Council describes how the government will encourage wage growth, expand financing for consumption, and support sectors that can generate new demand. It also asks regulators and companies to boost product quality, reduce fraud and make returns easier, so buyers feel protected when they spend. In the government’s own words, the aim is straightforward.

Officials who released the national plan summarized the mission in plain language.

They said the plan would “boost consumption, stimulate demand, and increase spending power by raising earnings and reducing financial burdens.”

To guide implementation, agencies have outlined complementary tracks that work in parallel:

• Raise household income and improve employment, including better minimum wage mechanisms and support for urban and rural workers.
• Upgrade the quality and variety of services, especially in culture, sports, tourism, healthcare, childcare and elderly care.
• Support big ticket consumption through credit access, interest subsidies in select areas and wider trade in programs.
• Build new consumption scenarios, from digital and green products to health and fitness, with pilot cities testing local models.
• Improve consumer rights protection and dispute resolution, tighten safety rules, and address price and measurement fraud.
• Encourage banks and capital markets to support consumer facing companies with loans, bonds and equity financing.
• Make payments more convenient, including cash, cards, mobile payments and digital yuan where suitable.
• Attract inbound spending by easing visas and improving visitor services.

Which sectors are targeted to reach scale

By 2027, authorities want three sectors each to reach the trillion yuan mark. Based on guidance from the industry ministry, products for seniors and consumer electronics are among the front runners for this group. In parallel, ten hotspots are slated to become one hundred billion yuan markets. These include fitness gear, pet food and supplies, consumer drones, and trendy toys, among others. The targets reflect areas with steady demand and strong prospects for innovation, from smarter devices and wearables to home fitness and pet care.

Vice Minister of Industry and Information Technology Xie Yuansheng explained why these fields are high on the list.

He said these areas have demonstrated strong growth momentum and enormous development potential, giving the consumer market important characteristics such as diversification and vitality.

The plan also calls for integration of artificial intelligence into everyday products, including AI powered features in phones, screens and home appliances. It highlights the low altitude economy, a term Chinese policymakers use for drone and air mobility services at low flight levels, where consumer drones and related services can scale with better regulation and safety.

Services take center stage

Service consumption sits at the heart of the new push. Agencies have signaled wider market access in culture, internet services, telecommunications, healthcare and education, paired with more support for sports and entertainment. Cultural venues such as museums and scenic sites are encouraged to extend operating hours. Local governments are urged to host mass sports activities and build professional leagues and brands that draw spectators and sponsors. The goal is steady supply of affordable, quality services that lift daily life and weekend spending.

How China plans to draw more visitors

Inbound consumption is a clear focus. Authorities intend to expand visa free entry for more countries and improve visa procedures where required. The Ministry of Culture and Tourism plans to launch a refund at purchase pilot so departing foreign tourists can reclaim duties without lengthy paperwork. The commerce ministry will select around 50 cities to pilot new consumption formats, mixing business, travel, culture, sports and health, and another set of cities will specialize in attracting inbound shoppers and visitors. These steps aim to increase spending from visitors while also improving services that locals use year round.

A growing focus on the silver economy

China’s aging population is changing the makeup of consumption. Policymakers want more senior friendly products and services that are safe, easy to use and priced for fixed incomes. The plan sketches out development of elderly care service robots, comfortable shoes and clothing for seniors, easy to swallow foods, and simplified interfaces for apps and smart devices. Standards and a possible silver age certification are under study so that families can trust product labels when they buy for older relatives.

Public policy will support the services that surround those products. Fiscal subsidies for elderly benefits and medical insurance are set to rise, and pensions for retirees are being adjusted upward. Banks are encouraged to extend financing to qualified elderly care institutions so new beds and community services can come online. The aim is to reduce the cost burden on families while growing a market that will stay large for decades.

Autos and other big ticket items

The auto sector remains central to household spending. The commerce ministry will pilot reforms to make buying and using cars easier, while boosting aftermarket services such as vehicle modification, leasing, motorsport events and recreational vehicle camping. That approach spreads activity across the entire value chain, not only at the moment of purchase. It also supports local jobs in services that surround the car.

Trade in programs are another lever. Authorities have set aside central funds and special treasury bonds to help replace older appliances, phones and tablets with more efficient models. Interest subsidies on select personal consumer loans are in place to lower borrowing costs for households that need financing. Together, these measures target the two main barriers to big ticket spending, confidence about future income and the monthly cost of a purchase.

Finance and payments: how support will reach consumers and firms

Financial policy is being aligned with the consumption drive. The central bank and other departments have issued guidance that asks banks to lend more to service providers and consumer facing companies and to offer products that suit real consumption scenarios. A re lending facility of about 500 billion yuan has been set up to support loans through national and urban commercial banks in key service sectors. Credit support is encouraged for areas such as culture, tourism and education, and qualified firms can raise funds in bond markets as well. Local governments are urged to use investment funds to back projects in elderly care, culture, tourism and emerging digital and green consumption.

On the household side, lenders are told to improve access to personal consumption loans with reasonable terms and rates. Payment convenience is a priority, with a push to ensure people can pay with cash, bank cards, mobile wallets or digital yuan in common scenarios. Policymakers also want to strengthen the credit system and promote innovative financial products tied to consumption cases, for example installment options for appliances or healthcare services. Steps to stabilize capital markets and broaden property income channels, such as more bond products for individual investors, are part of the same toolkit to bolster perceived wealth and reduce caution around spending.

Consumer rights, quality and market order

To make buyers more willing to spend, regulators plan to improve quality and clamp down on practices that erode trust. A three year plan from 2025 to 2027, issued by the State Administration for Market Regulation and partner agencies, focuses on supply quality, market order, rights protection, joint governance of the market and standard setting. The plan encourages stronger safety oversight for food and medicine, and targets issues such as measurement and price fraud and false advertising. Companies are urged to improve their dispute resolution systems and to offer no reason returns and exchanges in trial programs.

Quality grading mechanisms for products and services are being explored so buyers can compare on more than price. The same plan calls for brand building in automobiles, home appliances, home furnishings and electronics, as well as higher service standards in elderly care, childcare and tourism. Regulators see these steps as essential to reduce consumption risks at the source and keep the buying experience smooth.

AI, drones and other tech led growth areas

Artificial intelligence is woven into the consumption agenda. China’s user base for generative AI, which reached hundreds of millions by mid year, gives device makers and app providers a large audience for AI features, from personal assistants on phones to smarter home screens. Policymakers want enterprises to push into new technologies such as autonomous driving, ultra high definition video, robotics, brain computer interfaces and 3D printing. The plan’s language around AI integration into consumer goods is designed to spur innovation while giving firms time to develop reliable products that consumers actually want to use.

Drones sit at the crossroads of tech and lifestyle. Consumer drones are already a strong export, and domestic demand can grow further with new recreational uses, better safety infrastructure and clear rules for low altitude flight. The plan positions drones within the broader push for digital, green and health related consumption, where apps, sensors and data are paired with real world experiences from fitness to travel.

How success will be measured

Officials have set milestones for 2027 and a longer horizon to 2030. By 2027, they expect to see three consumption sectors at the trillion yuan level and ten hotspots at the hundred billion yuan level, alongside a more optimized supply structure. By 2030, consumption’s contribution to growth should be higher, both through services and goods. Progress will depend on whether incomes rise, credit reaches consumers and firms without excess risk, and the service supply chain can keep improving quality while keeping prices in reach.

Several metrics will bear watching. Retail sales, especially in services such as dining, travel and entertainment. Inbound arrivals and tourism receipts after visa changes and duty free rebates. Loan growth to service providers and small businesses that hire locally. Elderly care capacity in cities and counties, plus the take up of senior friendly devices and apps. Auto sales and aftermarket activity, including leasing and events. These indicators will show whether the policy mix is translating into daily spending.

Context: why this shift matters for households and companies

The emphasis on consumption reflects a broader transition. For years, investment in property and infrastructure carried a large share of growth. That model is under pressure, and households have become cautious as home prices softened and stock markets swung. The new plan tries to address both sides of the equation. It aims to lift spending power through income support and lower borrowing costs, while helping producers align with what buyers want today, from healthy lifestyles and travel to digital experiences and care services across ages.

For companies, the message is to move faster toward differentiated, higher quality goods and reliable services. Pilot cities will test new consumption formats that blend retail, culture, sports and healthcare. Sectors once tightly restricted, such as parts of internet services or culture, will open wider to private and foreign investment. With clearer standards and better consumer protection, firms that compete on quality should find it easier to build brands and repeat customers.

What to Know

• Beijing released a 19 point plan to raise consumption’s role in growth and align supply with new demand patterns through 2030.
• Targets include three sectors at one trillion yuan each and ten hotspots at one hundred billion yuan by 2027, covering seniors products, consumer electronics, fitness gear, pet supplies, drones and trendy toys.
• Services are central, with wider market access in culture, sports, tourism, healthcare and education, extended venue hours and support for international sports events.
• Visa free entry will expand and duty refunds for departing visitors will be streamlined to lift inbound spending.
• Autos get a full value chain boost, including aftermarket services such as leasing, modification and motorsport events, plus trade in incentives for home goods and devices.
• Financial support features more consumer credit, a re lending facility of about 500 billion yuan for key service sectors, and bond market access for qualified culture, tourism and education firms.
• Regulators will tighten safety, curb price and measurement fraud, and promote no reason returns trials to strengthen buyer trust.
• AI integration, drones and the low altitude economy are promoted as tech led growth areas in consumer markets.
• Income growth, easier payments including digital yuan, and capital market measures aim to lift perceived wealth and willingness to spend.
• Milestones for 2027 and 2030 will be judged by gains in retail sales, services spending, inbound tourism, and the rise of senior friendly and smart consumer goods.