Bold opening: China is doubling down on domestic demand in 2026, and the playbook is about strengthening everyday buying power and a thriving home market—and yes, that stance will spark debate.
China will sustain its growth strategy by expanding domestic demand and boosting consumer activity in 2026, according to Lou Qinjian, spokesperson for the fourth session of the 14th National People’s Congress (NPC) at a press conference on Wednesday.
Consumption stands as the main engine of economic growth, Lou said, and China will take decisive steps to stimulate spending while accelerating the development of a vibrant domestic market.
On the supply side, the plan is to raise the supply of high-quality goods and services. Specific measures include initiatives to upgrade service consumption and cultivate new growth drivers within the service sector, as well as optimizing trade-in programs for consumer goods to spur product upgrades and replacement demand. Additionally, China aims to foster a more internationalized consumption environment, broaden consumption scenarios, and lead a nationwide
"Shopping in China" promotional campaign to energize the market.
On the demand side, Lou emphasized that improving people’s livelihoods will align closely with consumption expansion. The country will promote high-quality employment and implement income growth plans for urban and rural residents to strengthen household purchasing power. It will steadily advance equal access to essential public services and improve systems for education, childcare, elder care, and healthcare to ease consumer concerns and remove barriers to spending.
Lou also reviewed progress made in 2025 to boost consumption. A series of spending-stimulus measures helped the consumer market grow steadily. Total retail sales of consumer goods exceeded 50 trillion yuan (~$7.25 trillion) for the first time, and consumption contributed about 52% to overall economic growth.
He noted ongoing improvements in consumption structure and a surge in service-related spending, with retail sales of services rising 5.5%. Inbound consumption also grew significantly. China expanded visa-free entry policies and refined departure tax refunds, contributing to nearly a twofold increase in annual sales of tax-refunded goods for travelers leaving the country.
And this is where it gets controversial: the balance between expanding domestic demand and managing debt, inflation, and global trade tensions remains a point of contention among economists. Does doubling down on home consumption truly shield the economy from external shocks, or could it come at the cost of reduced productivity investments and longer-term growth? What’s your take on prioritizing domestic demand versus export-oriented strategies in a rapidly changing global market?
