China Sets 60 Trillion Yuan Retail Target in Consumption Plan

The State Council of the People's Republic of China released its first five-year plan dedicated exclusively to expanding domestic consumption from 2026 to 2030. The strategic blueprint targets annual retail sales of approximately 60 trillion yuan by 2030, signaling a shift in the national economic driver from industrial output toward household spending.

To achieve this goal, the government intends to increase household incomes through higher wages, improved property income, and a strengthened social security system designed to reduce precautionary savings. The plan prioritizes service-sector consumption, specifically targeting healthcare, education, childcare, elderly care, tourism, and sports. Officials from the National Development and Reform Commission further detailed targeted support for welfare-improving consumption.

Regulatory changes include the removal of unreasonable restrictive measures regarding housing, car purchases, and entertainment event approvals. The strategy also promotes AI-powered, digital, and green spending models. To encourage inbound consumption, the plan calls for expanded visa-free entry and an increase in direct flights connecting China to the United States, Europe, and Belt and Road Initiative partner countries.