Enhancing demand and consumption: Primary objectives for China's economy in 2025
Enhancing consumer spending is a key focus of China's economic agenda for 2025, carrying deep strategic importance and offering extensive opportunities for growth.
TroibNews 
**Editor's note:** Liu Chunsheng, a special commentator on current affairs for CN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CN.
The Central Economic Work Conference in China has established the roadmap for the country's economic endeavors in 2025, placing a strong focus on boosting consumption as a critical priority. This initiative not only aims to stabilize the economy in the short term but also possesses significant strategic implications. Its goal is to widen the scope of domestic demand, creating a robust foundation for the ongoing and healthy advancement of China's economic landscape.
The necessity of enhancing consumption in China’s economy is clear. As the primary catalyst for economic growth, consumption has become increasingly vital amidst a complex and changing global economic environment. Recent years have seen sluggish global economic progress, a rise in trade protectionism, and numerous uncertainties surrounding exports. Additionally, the current restructuring of the domestic economy reveals that the investment-driven growth model is gradually reaching its limits. In this context, consumption has emerged as a crucial element in stabilizing economic growth. From a domestic perspective, the country’s vast population inherently presents immense consumption potential. Tapping into this potential can effectively mitigate the impact of external economic disturbances and foster autonomous, stable economic development.
China's consumer market has experienced remarkable transformations over the past few decades. The shift from basic subsistence consumption to today's diverse and quality-driven consumption patterns reflects continuous upgrades in the consumption structure. Modern trends show significant growth in emerging consumption sectors such as service consumption and cultural tourism, which are becoming central to the consumer market. For instance, the domestic tourism market has been flourishing, with major tourist destinations bustling during holidays and tourism revenue reaching unprecedented levels. This not only stimulates the synchronized development of related sectors—including transportation, catering, and accommodation—but also injects substantial energy into local economies. The proliferation of internet technology has facilitated the rise of new forms of consumption like online shopping and mobile payments, expanding consumption avenues and unleashing potential. Statistics reveal that the transaction volume during the annual "Double Eleven" online shopping festival has surged dramatically, showcasing the resilience and vitality of China’s consumer market.
To achieve the ambitious goal of markedly enhancing consumption, several strategic initiatives are being implemented. Regarding income augmentation and reducing burdens for middle- and low-income groups, the government is adopting a multifaceted approach. Plans include modest increases in basic pensions for retirees and urban and rural residents, as well as financial subsidies for medical insurance, all aimed at boosting disposable incomes and alleviating living expenses. For instance, raising pensions will enable retired individuals to allocate more funds to areas such as cultural entertainment and healthcare, thus fostering growth in related sectors.
Efforts to innovate consumption experiences are also gaining momentum, with policies to expand equipment upgrading and consumer goods trade-in programs while actively promoting diverse consumption models such as the “debut economy,” winter sports economy, and silver economy. For example, cities are constructing platforms to attract product launches from renowned domestic and international brands, meeting consumers’ interests in fashionable and premium goods while enhancing urban commercial appeal. The winter sports economy, capitalizing on the legacy of the Beijing 2022 Winter Olympics, has spurred the growth of winter tourism and related industries in northern regions, facilitating the development of both upstream and downstream sectors like equipment manufacture and venue construction. The silver economy addresses the consumption needs of an aging population, creating a variety of specialized products and services including elderly tourism, healthcare, and finance.
In fostering the cultural tourism sector, there has been a significant strengthening of policy support and guidance to leverage the rich cultural and tourism assets found in different regions, enabling the formation of unique tourism brands. Various cultural and tourism events have enhanced the visibility and reputation of tourist sites, drawing more visitors. For instance, the cultural tourism in Yunnan focusing on ethnic themes and Xi'an's historical offerings have emerged as vital industries in their localities, significantly boosting regional economies. Beyond traditional support and resource development, innovations in cultural products have revitalized the industry. The launch of the video game *Black Myth: Wukong* on August 20, 2024, garnered global attention, and its recognition at The Game Awards 2024 in Los Angeles, where it won two major awards, not only acknowledged the quality of the game but also elevated the profile of Chinese culture, resulting in increased game consumption. The game has also positively impacted cultural tourism, with 27 of its filming locations situated in Shanxi, leading to a surge in both tourism interest and ticket sales. The local cultural and tourism authorities have responded with campaigns such as "Follow Wukong to Tour Shanxi," featuring themed routes and merchandise.
Looking ahead, as these policy measures continue to be enacted, China’s consumer market is poised for even greater prosperity. The consumption structure is expected to undergo further optimization, and emerging consumption areas will continue to thrive, becoming new drivers of economic growth. Moreover, the flourishing consumer market will stimulate the coordinated expansion of related industries, foster employment opportunities, and create a virtuous cycle of economic development. On an international scale, China’s large and dynamic consumer market is likely to attract more global high-quality resources, further solidifying the nation’s position in the global economic arena.
Boosting consumption is a central objective of China’s economic strategy for 2025, holding significant strategic implications and promising developmental prospects. By executing a range of precise and effective strategies, China’s economy is anticipated to experience stable growth in the face of evolving consumer trends, progressing towards a higher stage of quality development.
Rohan Mehta contributed to this report for TROIB News
The Central Economic Work Conference in China has established the roadmap for the country's economic endeavors in 2025, placing a strong focus on boosting consumption as a critical priority. This initiative not only aims to stabilize the economy in the short term but also possesses significant strategic implications. Its goal is to widen the scope of domestic demand, creating a robust foundation for the ongoing and healthy advancement of China's economic landscape.
The necessity of enhancing consumption in China’s economy is clear. As the primary catalyst for economic growth, consumption has become increasingly vital amidst a complex and changing global economic environment. Recent years have seen sluggish global economic progress, a rise in trade protectionism, and numerous uncertainties surrounding exports. Additionally, the current restructuring of the domestic economy reveals that the investment-driven growth model is gradually reaching its limits. In this context, consumption has emerged as a crucial element in stabilizing economic growth. From a domestic perspective, the country’s vast population inherently presents immense consumption potential. Tapping into this potential can effectively mitigate the impact of external economic disturbances and foster autonomous, stable economic development.
China's consumer market has experienced remarkable transformations over the past few decades. The shift from basic subsistence consumption to today's diverse and quality-driven consumption patterns reflects continuous upgrades in the consumption structure. Modern trends show significant growth in emerging consumption sectors such as service consumption and cultural tourism, which are becoming central to the consumer market. For instance, the domestic tourism market has been flourishing, with major tourist destinations bustling during holidays and tourism revenue reaching unprecedented levels. This not only stimulates the synchronized development of related sectors—including transportation, catering, and accommodation—but also injects substantial energy into local economies. The proliferation of internet technology has facilitated the rise of new forms of consumption like online shopping and mobile payments, expanding consumption avenues and unleashing potential. Statistics reveal that the transaction volume during the annual "Double Eleven" online shopping festival has surged dramatically, showcasing the resilience and vitality of China’s consumer market.
To achieve the ambitious goal of markedly enhancing consumption, several strategic initiatives are being implemented. Regarding income augmentation and reducing burdens for middle- and low-income groups, the government is adopting a multifaceted approach. Plans include modest increases in basic pensions for retirees and urban and rural residents, as well as financial subsidies for medical insurance, all aimed at boosting disposable incomes and alleviating living expenses. For instance, raising pensions will enable retired individuals to allocate more funds to areas such as cultural entertainment and healthcare, thus fostering growth in related sectors.
Efforts to innovate consumption experiences are also gaining momentum, with policies to expand equipment upgrading and consumer goods trade-in programs while actively promoting diverse consumption models such as the “debut economy,” winter sports economy, and silver economy. For example, cities are constructing platforms to attract product launches from renowned domestic and international brands, meeting consumers’ interests in fashionable and premium goods while enhancing urban commercial appeal. The winter sports economy, capitalizing on the legacy of the Beijing 2022 Winter Olympics, has spurred the growth of winter tourism and related industries in northern regions, facilitating the development of both upstream and downstream sectors like equipment manufacture and venue construction. The silver economy addresses the consumption needs of an aging population, creating a variety of specialized products and services including elderly tourism, healthcare, and finance.
In fostering the cultural tourism sector, there has been a significant strengthening of policy support and guidance to leverage the rich cultural and tourism assets found in different regions, enabling the formation of unique tourism brands. Various cultural and tourism events have enhanced the visibility and reputation of tourist sites, drawing more visitors. For instance, the cultural tourism in Yunnan focusing on ethnic themes and Xi'an's historical offerings have emerged as vital industries in their localities, significantly boosting regional economies. Beyond traditional support and resource development, innovations in cultural products have revitalized the industry. The launch of the video game *Black Myth: Wukong* on August 20, 2024, garnered global attention, and its recognition at The Game Awards 2024 in Los Angeles, where it won two major awards, not only acknowledged the quality of the game but also elevated the profile of Chinese culture, resulting in increased game consumption. The game has also positively impacted cultural tourism, with 27 of its filming locations situated in Shanxi, leading to a surge in both tourism interest and ticket sales. The local cultural and tourism authorities have responded with campaigns such as "Follow Wukong to Tour Shanxi," featuring themed routes and merchandise.
Looking ahead, as these policy measures continue to be enacted, China’s consumer market is poised for even greater prosperity. The consumption structure is expected to undergo further optimization, and emerging consumption areas will continue to thrive, becoming new drivers of economic growth. Moreover, the flourishing consumer market will stimulate the coordinated expansion of related industries, foster employment opportunities, and create a virtuous cycle of economic development. On an international scale, China’s large and dynamic consumer market is likely to attract more global high-quality resources, further solidifying the nation’s position in the global economic arena.
Boosting consumption is a central objective of China’s economic strategy for 2025, holding significant strategic implications and promising developmental prospects. By executing a range of precise and effective strategies, China’s economy is anticipated to experience stable growth in the face of evolving consumer trends, progressing towards a higher stage of quality development.
Rohan Mehta contributed to this report for TROIB News
