China launches first five‑year consumption expansion plan to lift domestic demand

The Chinese government has announced its inaugural five‑year plan focused on expanding consumer spending, targeting a 20% increase in total retail sales of consumer goods to roughly 60 trillion yuan by 2030. The strategy, released shortly after the latest GDP figures showed growth slowing to 4.3% in the second quarter of 2026, shifts emphasis from short‑term subsidies toward structural reforms, with only one of the 28 proposed measures involving direct subsidies. It aims to address weak domestic demand stemming from a prolonged real‑estate slump, low retail growth (1.3% year‑on‑year) and declining investment in housing.

Analysts criticize the plan for overlooking deeper issues such as household income, housing affordability, healthcare, education and pension costs, arguing that without improvements to these fundamentals, consumer confidence may remain muted. While the plan includes initiatives in services, aging‑economy care, tourism, sports and "AI + consumption," experts contend that its focus on retail experience and infrastructure projects may not substantially raise disposable income or resolve structural constraints on spending.