In 2025, China is rolling out fresh initiatives to boost consumer spending and expand domestic demand, aiming to energize its economy. The country is opening up its service sector more than ever, tailoring to the evolving needs of its people. This means welcoming high-quality services like advanced healthcare and exciting cultural entertainment from abroad, injecting new life into the consumer market.
A recent report from the China Financial 40 Forum highlighted that while the Chinese economy still faces challenges in demand, there’s a silver lining with improved cash flow in various sectors. The real estate market is showing mixed signals: major cities are seeing a rebound in home sales and prices, while smaller cities are still adjusting. On the export front, China’s trade remains strong, with little impact felt from tariff pressures.
To tackle ongoing hurdles, experts recommend policies like ramping up public investment, stabilizing stock and currency markets, and fostering a better environment for businesses to thrive. There’s also an emphasis on maintaining dialogue with other nations while standing firm against what is seen as undue pressures.
Huang Yiping, dean at Peking University’s National School of Development, believes these consumption-boosting policies will have a lasting positive effect. “Countercyclical policies help stabilize economic growth and create a supportive macroeconomic environment for consumption,” he noted.
Moreover, strategies like encouraging larger families, developing big city areas, and helping migrant workers settle in urban centers not only widen the consumer base but also boost spending power. Over time, these moves are expected to keep the consumer market thriving and support sustainable economic growth.
Zhang Bin from the Chinese Academy of Social Sciences emphasized that expanding domestic demand should focus on boosting GDP through smart policies that increase both income and consumption. In the near term, lowering interest rates and increasing public investment are key steps to spark economic activity, create jobs, raise incomes, and ultimately drive more spending.
