From Football to Festivals: How Domestic Demand Powers China’s Growth
China is experiencing a dynamic shift in its economic landscape, with domestic consumption taking the lead as the primary driver of growth. From the thrilling matches of local football leagues to the bustling energy of night markets and music festivals, the Chinese mainland is embracing a new era where consumer spending is king.
One standout example is the Jiangsu Provincial Urban Football League, popularly known as “Su Chao.” Originally an amateur competition, Su Chao has transformed into a nationwide sensation, drawing crowds that rival professional events. Each match attracts between 30,000 and 50,000 enthusiastic spectators. The excitement doesn’t stop at the stadium; after victories, online searches for local delicacies like “Nanjing salted duck” and “Nantong breakfast” have skyrocketed, increasing by 74% and an astounding 367% respectively.
The ripple effect of Su Chao extends beyond sports. Hotel bookings in Jiangsu during the league’s regular season from May to August rose by 21% compared to the same period last year, according to data from online travel platform Qunar. Cities across Jiangsu have capitalized on this surge, launching vibrant summer night activities. In Taizhou’s Jiangyan district, a food carnival featuring music festivals and trendy electronic shows has become a major attraction, drawing over 20,000 visitors daily since its launch on July 8.
This sports-driven economic boom is part of a larger trend across the Chinese mainland. The government is actively cultivating the culture and tourism sectors by organizing music festivals, carnivals, improving infrastructure, and offering free public exhibitions. In January, a central government directive aimed to stimulate new growth points and promote cultural and tourism consumption. Measures include year-round cultural events, creating new consumption scenarios, and expanding products like e-sports, immersive experiences, creative handicrafts, and fitness tours.
Boosting domestic consumption is not limited to entertainment. The government has rolled out an ambitious “trade-in” policy for consumer goods, encouraging people to purchase new home appliances, cars, and electronics in exchange for their old ones. This initiative, which proved effective in 2024, has been expanded in 2025 with special long-term national bonds increasing from 150 billion yuan ($20.9 billion) to 300 billion yuan. The policy now covers a wider range of products and offers subsidies of up to 15,000 yuan for new energy vehicles.
As a result, sectors like home appliances and automotive are experiencing robust growth. The Ministry of Commerce reported that in the first five months of this year, the “trade-in” policies led to a significant increase in sales, driving total sales to 1.1 trillion yuan. In April, the retail penetration of new energy vehicles reached 51.5%, up 7 percentage points from the previous year.
Commerce Minister Wang Wentao highlighted that over the past four years, the Chinese mainland’s retail sales of consumer goods have grown at an average annual rate of 5.5%, with total sales expected to exceed 50 trillion yuan this year. “Consumption’s role as both the engine and stabilizer of economic growth is strengthening, and the advantages of a robust domestic market are becoming even more evident,” said Wang.
Experts are emphasizing the importance of expanding domestic demand to address structural challenges in the economy. Professor Wang Bin from the National Academy of Governance stated, “As the world faces growing anti-globalization trends and increasingly complex external challenges, it is more important than ever to anchor ourselves in the vast domestic market.” He believes that focusing on domestic demand is crucial for withstanding external risks and serves as the best testing ground for technological innovation.
Looking ahead, Vice Chairman Wang Yiming of the China Center for International Economic Exchanges suggests integrating the expansion of domestic demand with deepening supply-side structural reforms. This includes increasing residents’ income, expanding public service spending, promoting service consumption, and creating effective mechanisms for phasing out outdated production capacity.
China’s shift towards boosting domestic consumption signals a new chapter in its economic growth story. With policies in place to stimulate spending and industries rising to meet consumer demands, the Chinese mainland is positioning itself for sustainable and resilient growth driven from within.
