China sets 19 measures to expand consumer spending, with major market targets for 2027

Three trillion yuan markets are the next milestone

China wants three consumption sectors to reach one trillion yuan each by 2027, alongside ten spending hotspots worth one hundred billion yuan each. A new program of 19 measures from the Ministry of Industry and Information Technology and several other departments aims to bring the goods and services companies supply closer to what people want to buy, and to increase consumption's role in gross domestic product by 2030.

Products for older people and consumer electronics are among the leading candidates for the trillion yuan group. Fitness equipment, pet food and supplies, consumer drones and trendy toys feature among the smaller markets targeted for expansion. The program combines those industrial ambitions with a wider push across services, smart devices, tourism and elderly care.

Beijing's immediate challenge is household caution. Confidence has lagged during a property downturn, lower inflation and weaker job growth in some regions. Exports also face uncertainty from slower global demand and continuing trade tensions. Encouraging spending at home is therefore becoming a larger part of the government's growth strategy.

The approach works on two fronts: helping households afford purchases and encouraging companies to make products and services worth buying. Income support, access to credit, better quality and stronger consumer protection all form part of that effort. The targets also connect with existing policies, including a sports industry goal of seven trillion yuan by 2030, replacement incentives for household goods and electronics, and easier travel rules for foreign visitors.

Income, supply and trust are linked

The broader national consumption plan from the General Office of the Communist Party of China Central Committee and the General Office of the State Council sets out support for wage growth, financing and sectors capable of generating new demand. Officials releasing that plan described its purpose in terms of both household earnings and expenses.

boost consumption, stimulate demand, and increase spending power by raising earnings and reducing financial burdens.

Employment support covers urban and rural workers, while better minimum wage mechanisms are intended to help raise household income. Lower borrowing costs and support for major purchases sit alongside those measures. For a family deciding whether to replace an appliance or pay for a service, both the money coming in and the cost of the purchase matter.

Companies and regulators are also being asked to improve the buying experience. Higher product quality, action against fraud and easier returns are intended to make people more comfortable spending. Expanding the range of goods alone may leave buyers hesitant if they worry about safety, misleading prices or the difficulty of resolving a complaint.

The policy package reaches across culture, sports, tourism, healthcare, childcare and elderly care. It also supports digital and green consumption, health and fitness, and local experiments with new ways to combine shopping and services. Banks, bond markets and equity financing are expected to help businesses respond, while payment improvements and visitor services address practical obstacles at the point of purchase.

Which markets are expected to grow?

The 2027 targets identify two different scales of opportunity. Three sectors are expected to reach one trillion yuan each, while ten hotspots are expected to become markets of one hundred billion yuan each. A trillion yuan is ten times one hundred billion yuan, so the plan combines ambitions for large established categories with room for smaller markets to expand.

Industry ministry guidance places products for seniors and consumer electronics among the leading candidates for the larger group. Fitness gear, pet food and supplies, consumer drones and trendy toys appear among the hotspots. The named categories do not amount to a complete list of all three sectors and all ten hotspots.

Xie Yuansheng, vice minister of industry and information technology, said these areas have demonstrated strong growth momentum and enormous development potential, giving the consumer market important characteristics such as diversification and vitality. Their appeal ranges from wearables and smarter devices to exercise at home and pet care.

The supply goal is to offer more variety without losing sight of reliability and price. Manufacturers are being encouraged to develop goods that fit changing daily needs, rather than simply increasing the volume of familiar products. By 2027, authorities expect a better balanced supply structure alongside the market size targets.

Services move to the center of the spending push

Services occupy a central place in the program because spending also includes activities and care, rather than goods alone. Agencies have signaled wider market access in culture, internet services, telecommunications, healthcare and education, together with more support for sports and entertainment.

Museums, scenic sites and other cultural venues are encouraged to extend their operating hours. Local governments are urged to organize mass sports activities and develop professional leagues and brands capable of attracting spectators and sponsors. Support for international sports events also forms part of the wider service agenda.

The aim is a steady supply of affordable services that people can use during ordinary days and weekends. Longer venue hours can create more opportunities to visit, while sports activities and entertainment can draw spending into surrounding services. Quality and accessible prices remain part of the policy's stated purpose.

Private and foreign investment are expected to gain wider access in some areas that have been tightly restricted, including parts of internet services and culture. For businesses, the program encourages more distinctive products, dependable service and brands that bring customers back.

Visitors and pilot cities get dedicated measures

Foreign visitors are another intended source of spending. Authorities plan to expand entry without a visa to more countries and improve procedures for travelers who still need one. Better visitor services are meant to make travel and shopping easier while also improving facilities used by residents throughout the year.

The Ministry of Culture and Tourism plans a refund at purchase pilot so departing foreign tourists can reclaim duties without lengthy paperwork. The intention is to simplify a process that can otherwise add administrative work to a shopping trip.

The commerce ministry will select around 50 cities to test new consumption formats that bring together business, travel, culture, sports and health. Another group of cities will concentrate on attracting inbound shoppers and visitors. These experiments give local governments a role in testing how different activities can be combined into a more appealing visit or day out.

Inbound arrivals and tourism receipts will help show whether easier entry, refunds and improved services are translating into spending. The city pilots will also test whether retail, cultural activities, sports and healthcare can support one another in practice.

The silver economy reaches beyond elderly care

China's aging population is changing what households need to buy. The silver economy refers to products and services for older people, including everyday goods as well as care. Policymakers want those products to be safe, straightforward to use and affordable for people living on fixed incomes.

The program sketches out elderly care service robots, comfortable shoes and clothing, foods that are easy to swallow, and simpler interfaces for apps and smart devices. These details connect the industrial targets with ordinary tasks, such as getting dressed, eating and using a phone.

Standards and a possible silver age certification are under study. The purpose is to give older buyers and their families labels they can trust when comparing products. A device advertised for seniors needs to work for the person using it, while a clear standard can help families judge its suitability.

Public support extends to the services surrounding those goods. Fiscal subsidies for elderly benefits and medical insurance are set to rise, and pensions for retirees are being adjusted upward. Banks are encouraged to finance qualified elderly care institutions, helping them add beds and community services. The policy aims to ease family costs while developing a market expected to remain large for decades.

Cars and replacement purchases remain major levers

The commerce ministry will pilot reforms intended to make buying and using cars easier. Its approach reaches beyond the initial sale into vehicle modification, leasing, motorsport events and recreational vehicle camping. These activities form part of the aftermarket, meaning the services and spending that follow a vehicle purchase.

Supporting those services spreads business across the car's period of use and can sustain local jobs. Leasing, events and other activities give the auto industry additional sources of demand alongside purchases of new vehicles.

Replacement programs provide another route to spending. Central funds and special treasury bonds have been set aside to help consumers exchange older appliances, phones and tablets for more efficient models. The programs connect incentives for households with demand for newer goods.

Interest subsidies on selected personal consumption loans are also in place to reduce borrowing costs. An interest subsidy lowers part of the interest expense a borrower would otherwise pay. Together, replacement support and cheaper financing address the monthly cost of a purchase, while income and employment measures seek to improve confidence about future earnings.

Finance supports businesses as well as households

The central bank and other departments have issued guidance encouraging banks to lend more to service providers and companies serving consumers. Lenders are asked to develop products suited to actual spending situations, rather than treating every business or purchase in the same way.

A relending facility of about 500 billion yuan has been established to support loans through national and urban commercial banks in key service sectors. Relending means providing funding to banks so they can support lending onward. In this case, the facility is intended to help credit reach businesses involved in services.

Culture, tourism and education are among the areas encouraged to receive credit support. Qualified companies can also raise money through bond markets, and the wider program supports equity financing. Local governments are urged to use investment funds for elderly care, culture, tourism and emerging digital and green consumption projects.

Households are meant to gain better access to personal consumption loans on reasonable terms and at reasonable rates. Financial products tied to specific purchases could include installments for appliances or healthcare services. Strengthening the credit system is part of the same effort to connect financing with real consumption needs.

Capital market measures seek to support household wealth as well. Steps to stabilize markets and widen channels for property income, including more bond products for individual investors, are intended to reduce caution about spending. Payment convenience is another priority, with cash, bank cards, mobile wallets and the digital yuan supported in common situations where suitable.

Consumer protection is part of the growth strategy

The State Administration for Market Regulation and partner agencies have issued a three year plan running from 2025 to 2027. It focuses on supply quality, market order, rights protection, joint governance of the market and standard setting.

Food and medicine safety oversight is among its priorities. Regulators also plan to tackle measurement fraud, price fraud and false advertising. Measurement fraud can affect whether a buyer receives the quantity paid for, while misleading prices can make a purchase appear cheaper than it is.

Companies are urged to improve dispute resolution and take part in trials of returns and exchanges without requiring a reason. Easier complaint handling and returns can reduce the practical difficulties consumers face after a disappointing purchase.

Product and service quality grading mechanisms are being explored so buyers can compare more than price. The plan also calls for brand development in automobiles, home appliances, home furnishings and electronics, alongside higher service standards in elderly care, childcare and tourism. Regulators aim to reduce risks before a purchase and make the buying experience smoother.

AI and drones connect technology with daily spending

Artificial intelligence is woven into the consumer goods agenda. The plan calls for AI features in phones, screens and home appliances, ranging from personal assistants to smarter home displays. China's generative AI user base had reached hundreds of millions by the middle of the year, giving device makers and app providers a large potential audience.

Generative AI creates content or responses from a user's request. For consumer products, the policy's focus is on turning such technology into functions people want to use. Companies are being encouraged to innovate while allowing time to develop reliable goods.

The technology agenda also includes autonomous driving, ultra high definition video, robotics, brain computer interfaces and 3D printing. These areas range from vehicles that perform driving tasks to systems connecting brain activity with computers and machines that build objects by adding material in layers.

Consumer drones link technology with recreation and other services. They are already a strong export, while domestic demand could grow through new recreational uses, safer infrastructure and clearer flight rules. The low altitude economy is the policy term for drone and air mobility services operating at low flight levels.

Drones also sit within the broader push for digital, green and health related consumption. Apps, sensors and data can be connected with experiences such as fitness and travel. The program seeks to develop these markets alongside the rules and safety arrangements needed for their use.

What will show whether the plan is working?

The policy has milestones extending from the current consumer protection program to the end of the decade. Its schedule gives companies and local authorities both nearer targets and a longer direction for consumption's role in the economy.

• 2025 to 2027: The market regulation plan focuses on quality, consumer rights, market order and standards.
• 2027: Three consumption sectors are targeted to reach one trillion yuan each, with ten hotspots reaching one hundred billion yuan each and a better balanced supply structure.
• 2030: Consumption's contribution to growth is intended to rise through goods and services. The separate sports industry target is seven trillion yuan.

Retail sales and spending on dining, travel and entertainment will be useful measures of progress. Inbound arrivals and tourism receipts can track visitor spending after changes to entry rules and refunds. Loan growth to service providers and small businesses that hire locally will help show where financial support is reaching.

Elderly care capacity in cities and counties, use of devices and apps designed for seniors, auto sales, leasing and events are further indicators. Success depends on rising incomes, credit reaching households and businesses without excessive risk, and services improving while prices remain within reach.

Property and infrastructure investment carried a large share of growth for years, but that model is under pressure. Softer home prices and swings in stock markets have encouraged household caution. The consumption program responds by combining earnings support and lower financing costs with products and services suited to current demand, from healthy lifestyles and travel to digital experiences and care across age groups.

What to Know

• China's 19 measures aim to align supply with consumer demand and increase consumption's role in growth by 2030.
• The 2027 goals are three sectors worth one trillion yuan each and ten hotspots worth one hundred billion yuan each.
• Priority markets include products for seniors, consumer electronics, fitness equipment, pet supplies, drones and trendy toys.
• Services receive support through wider market access, longer venue hours, sports activities and city pilots.
• Visitor measures include easier entry, improved services and a planned refund at purchase pilot.
• Cars, replacement purchases and selected consumer loans receive support alongside services such as leasing and motorsport events.
• A relending facility of about 500 billion yuan supports lending to key service sectors.
• The 2025 to 2027 consumer protection plan targets safety, fraud, standards, complaints and returns.
• AI features and drone markets are promoted alongside reliable products and safer operating arrangements.
• Income, spending, tourism, lending and access to care will help show whether the measures are reaching households.