CAI MENG/CHINA DAILY
The State Council, China's Cabinet, recently approved a plan to expand consumption during the 15th Five-Year Plan period (2026-30). It marks the first time that expanding consumption has been incorporated into a dedicated national plan.
The plan calls for the overall size of the consumer market to expand further by 2030, with a marked increase in the household consumption rate and rapid growth in spending on goods and services. It also targets total retail sales of consumer goods of around 60 trillion yuan ($8.93 trillion) by 2030 and a stronger contribution from consumption to GDP growth. The plan also puts promoting higher-quality services consumption and improving people's well-being at the top of its tasks for boosting consumption.
International experience shows that when per capita GDP reaches between $10,000 and $20,000, the share of services in consumption tends to rise more rapidly and the consumption structure shifts more quickly from goods-led spending toward services. China's per capita GDP approached $14,000 in 2025 as the country moved closer to high-income economy status.
Against that backdrop, China's consumption structure is showing a series of new trends. While the structure of goods consumption is upgrading at a faster pace, the scale and share of services consumption are also rising markedly, with services becoming the main engine of consumption growth.
