China plans to increase the supply of high-quality consumer goods and expand services consumption as part of efforts to strengthen domestic demand and support economic growth this year.

National People’s Congress spokesperson Lou Qinjian said consumption remains the main driver of the country’s economy, contributing about 52% of overall growth last year.

China’s total retail sales of consumer goods exceeded 50 trillion yuan for the first time in 2024, reflecting the growing role of household spending in the economy.

Policies aimed at raising spending power

Authorities plan to promote higher-quality employment and increase incomes for both urban and rural residents to improve their ability to spend.

Officials said the government would also introduce policies aimed at improving social welfare systems, including childcare and medical support, to encourage people to consume more confidently.

Challenges from weak domestic demand

Despite these efforts, policymakers continue to face challenges in reviving domestic demand, which has remained sluggish in recent years.

An imbalance between supply and demand has also kept deflationary pressures on factory-gate prices, highlighting broader economic challenges.

Focus on unified domestic market

The Standing Committee of the National People’s Congress will also oversee efforts to create a unified national market and support rural revitalisation.

Officials said additional resources would be directed towards improving living standards and strengthening public services.

The aim, Lou said, is to ensure people “can consume, dare to consume and are willing to consume”.

(with inputs from Reuters)