China will intensify efforts to boost domestic demand in 2026 through targeted consumption stimulus, service-sector expansion and retail reform, national media reports, citing remarks made by Commerce Minister Wang Wentao over the weekend.
Wang promised the government would press ahead with its Shopping in China initiative, promote service-led and digital consumption, and expand consumer goods trade-in schemes.
He said consumption policies would focus on quality and sustainability, with stronger support for green and healthy spending, innovation-driven digital trade and closer integration between trade and investment.
“There will also be efforts to build a unified national market, foster innovation in the retail sector, establish a more efficient and modern distribution system, and further advance pilot-city initiatives,” the minister added.
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Launched in April 2025, the Shopping in China campaign aims to make the country a more internationally friendly consumption hub by streamlining visa procedures and improving departure tax refunds. The Commerce Ministry is set to roll out dedicated pilot programmes in 15 additional cities this year.
Economists say this stimulus strategy reflects a structural shift in China’s consumption structure. Denis Depoux, global managing director of consultancy Roland Berger, described it as moving from “survival-oriented to development and experience-oriented.”
Weak domestic demand has been plaguing China in recent years, despite stimulus measures and falling prices.
Stagnant incomes, youth unemployment, limited social safety nets, uncertainty about the country’s economy and an ageing population are often cited as reasons for citizens’ sluggish spending habits.
