China Unveils Five-Year Plan to Boost Domestic Consumption, Shift Growth Focus

China plans to roll out a fresh set of measures over the next five years to boost domestic consumption, as policymakers seek to rebalance the economy away from heavy reliance on exports and investment and towards household spending, officials said on Monday. The plan will form part of China’s broader economic strategy for the 2026–2030 period.

Officials from the National Development and Reform Commission (NDRC) said consumption will play a bigger role in driving economic growth, acknowledging what they described as a “prominent imbalance” between strong industrial supply and relatively weak domestic demand. While no specific numerical targets were announced, authorities said the share of consumption in overall growth would be steadily increased.

As part of the shift, Beijing intends to place greater emphasis on services-led consumption, including sectors such as healthcare, elderly care, tourism, culture and leisure, rather than relying mainly on stimulus for manufactured goods. Policymakers see services as a key area for unlocking new spending potential as China’s population ages and consumer preferences evolve.

The government also plans to continue financial support measures aimed at encouraging spending and private investment. These include extending interest subsidies for certain consumer and business loans through the end of 2026, as well as maintaining trade-in programmes that have previously supported purchases of items such as electric vehicles and household appliances.

China’s renewed focus on consumption comes as economic growth faces headwinds from weak property activity, subdued consumer confidence and deflationary pressures. Although the economy expanded by around 5% last year, growth was driven largely by exports, highlighting the challenge policymakers face in stimulating domestic demand and ensuring more balanced, sustainable growth in the years ahead.