BEIJING: China plans to roll out new policies from 2026 to 2030 to spur domestic consumption and tackle “prominent” imbalances in supply and demand, with the services sector becoming a key focus, a state planning official said on Tuesday (Jan 20).
Chinese leaders have pledged to “significantly” lift household consumption‘s share of the economy over the next five years, but analysts say the task would be challenging without structural reforms and demand-side stimulus.
“The issue of having strong supply but weak demand in the current economic operation is indeed a prominent problem,” Wang Changlin, vice head of the National Development and Reform Commission (NDRC), said at a press conference.
China’s economy grew 5 per cent last year, matching the government’s target, as a boom in Chinese exports offset weak domestic consumption, a balancing act that is expected to be difficult to replicate.
Industrial output rose 5.9 per cent in 2025, outpacing the 3.7 per cent growth in retail sales, underscoring the supply-demand imbalance.
At another briefing on Tuesday, Vice Finance Minister Liao Min said the country would direct more funds toward lifting consumption and improving people’s livelihoods this year, without elaborating on the size of the allocation.
The ministry earlier in the day announced an extension of interest subsidies for consumers, consumer-service enterprises and businesses in need of equipment upgrades to the end of 2026 to revive softening domestic demand.
The extension seeks to “further boost consumption and expand domestic demand, continue to reduce the cost of personal consumer credit, and enhance residents’ willingness to spend,” the ministry said.
https://www.channelnewsasia.com/east-asia/china-plan-new-measures-consumption-next-five-years-5870041
