China Launches 18-Measure Plan to Boost County-Level Consumption

The Government of China launched a strategic initiative on August 18, 2026, to revive domestic demand by targeting counties, townships, and smaller cities. A guideline jointly issued by the Ministry of Commerce and eight other departments introduces 18 measures to upgrade retail infrastructure, including the renovation of farmers' markets and township commercial centers. The plan aims to reduce the economy's reliance on exports following a second-quarter GDP growth slowdown to 4.3 percent and a 19.2 percent decline in property investment during the first seven months of the year.

To attract domestic and international brands, the policy proposes a one license for multiple locations system to lower operational costs and provides interest subsidies for personal consumption, service-sector business, and startup loans. The initiative seeks to extend the 15-minute convenient living circle concept to rural areas and improve distribution networks and services for the elderly and children.

Lower-tier markets represent approximately 70 percent of the population and 60 percent of total retail sales. While rural retail sales rose 2.4 percent year-on-year in the first seven months of 2026, the government is now aggressively courting brands like Starbucks and Sam's Club to join existing operators such as Jiajiayue Group and Mixue Ice Cream & Tea, which have already established significant footprints in these regions to leverage lower rent and labor costs.