*At the ongoing "two sessions" in Beijing, the strategic importance of domestic demand has been underscored in both the government work report and the draft outline of the 15th Five-Year Plan (2026-2030).

*Boosting consumption hinges fundamentally on boosting confidence, and China is doubling down on policy support to unleash consumer potential.

*Beyond young urban consumers, who are the major drivers of new forms of spending, China is also unlocking the consumption potential of rural and elderly population groups.

*Technological innovation is emerging as a powerful engine for consumption expansion and upgrading.

BEIJING, March 6 (Xinhua) -- Getting people to spend more has emerged as a major economic task for China in 2026 and beyond, aligning with the country's broader shift toward a consumption-driven growth model.

At the ongoing "two sessions" in Beijing, the strategic importance of domestic demand has been underscored in both the government work report and the draft outline of the 15th Five-Year Plan (2026-2030).

Amid a complex and challenging international environment, the work report stressed the need to remain committed to expanding domestic demand, pledging a range of measures to stimulate consumption -- a pivotal pillar of domestic demand.

This focus is further reinforced in the draft outline, which states that China aims to "achieve a notable increase in household consumption as a share of gross domestic product, making domestic demand a more prominent economic driver" during the five-year period.

The foundations are already solid. Last year, China's total retail sales of consumer goods exceeded 50 trillion yuan (about 7 trillion U.S. dollars) for the first time, with consumption contributing 52 percent to economic growth, up 5 percentage points from the previous year.

China's consumer market -- the world's second-largest -- is undergoing a profound shift from scale expansion to quality upgrading, with diverse measures being rolled out to unlock its immense potential.

POLICY EMPOWERMENT

Boosting consumption hinges fundamentally on boosting confidence, and China is doubling down on policy support to unleash consumer potential.

The government work report places "building a robust domestic market" first among the major tasks for 2026. It also lists a series of concrete measures, including the allocation of 250 billion yuan in ultra-long special treasury bonds to support consumer goods trade-in programs, the establishment of a 100-billion-yuan fiscal-financial coordination fund to facilitate domestic demand expansion, and the broadening of loan interest subsidies coverage for consumers and service entities.

These policies build on the remarkable achievements of the trade-in program, which generated combined sales of 3.92 trillion yuan in 2024 and 2025, benefiting consumers on 494 million occasions, according to data from the Ministry of Commerce.

National legislator Liu Hui, who is a technician at Jiangling Motors Co., Ltd. in east China's Jiangxi Province, has observed the tangible benefits of China's pro-consumption policies in the new energy vehicle (NEV) sector.

"Several of my neighbors and relatives last year took advantage of the trade-in subsidies to swap their old cars for NEVs," he said. "And a young technician in our factory saved nearly 20,000 yuan on an NEV purchase by using the trade-in subsidy and the government's interest subsidy on consumer loans."

"Such policies not only spur investment but also boost consumption," he said.

Beyond short-term stimuli, China is also focusing on long-term empowerment to transform consumption from a policy-driven target into a natural choice for people.

According to the government work report, the country will implement an income growth plan for urban and rural residents, rolling out a range of practical measures to boost the earnings of low-income groups, increase property incomes, and refine the remuneration and social security systems.

NEW CONSUMPTION

As incomes rise and the economy shifts toward quality growth, consumption is expanding from goods to experiences and from function to emotion, fueling the rise of new types such as spending on the debut economy, the pet economy, China-chic products and immersive experiences.

This trend is highlighted in the draft outline, which pledges to "unleash the potential of service consumption" and "promote the expansion and upgrading of goods consumption." Additionally, the government work report pledges to upgrade services to the benefit of consumers, develop a number of new, high-profile consumption scenarios, and move faster to nurture new areas of consumption growth.   

Zhang Xiaowen, a national legislator from northeast China's Liaoning Province and chairperson of Dongbei Piano Instruments Co., Ltd., is tapping into this trend by integrating piano manufacturing with music education and cultural tourism.

"As consumption upgrades and music education becomes more widespread, consumers are demanding higher-quality, more personalized pianos, which requires us to adjust our product mix and develop series tailored to different groups," she said. The company is also building a "piano culture hub" that combines production, education and travel, creating immersive experiences that resonate with young people and cultural consumers.

Beyond young urban consumers, who are the major drivers of new forms of spending, China is also unlocking the consumption potential of rural and elderly population groups.

According to the draft outline, efforts will be made to improve the quality and efficiency of county-level commercial activities, strengthen rural express delivery services, enrich the supply of age-friendly products and senior care services, and cultivate leading enterprises and renowned brands in the silver economy.

Wu Fenggang, a national political advisor and economist at Jiangxi Institute of Socialism, noted that elderly consumers are "shifting from basic needs to quality, smart and service-based products," creating new opportunities for the silver economy in a graying China.

TECH AS A CATALYST

As the draft outline promises to "lead new supply with new demand and create new demand with new supply," technological innovation is emerging as a powerful engine for consumption expansion and upgrading.

With "achieving greater self-reliance and strength in science and technology to develop new quality productive forces" highlighted in the development blueprint, technology is now reshaping consumption across multiple sectors.

According to the document, China will further integrate AI with consumption upgrading. It plans to develop AI-native applications for productivity and companionship, advance next-generation intelligent terminals including AI-powered smartphones, computers and intelligent robots, and expand new scenarios for intelligent service consumption.

At the "future factory" of Wensli Group Co., Ltd. in east China's tech hub of Hangzhou, Zhejiang Province, rows of smart printing machines stand at the ready. When consumers design personalized silk scarves through the company's AIGC model, plain white fabric can be transformed into an exquisite printed scarf in as little as half an hour.

"We are exploring the application of AI in production," said Tu Hongyan, a national legislator and chairperson of the company. "Today's consumers, especially young people, crave quality, personalization and emotional value, and we will continue to innovate and optimize supply to meet the needs."

National legislator and tech expert Zhou Di believes innovation in the supply of high-quality consumption options is the key to enhancing people's intrinsic motivation to spend. He said that the integration of technology with consumption in areas like smart homes, health monitoring and age-friendly products should be promoted further.  (Video reporters: Long Lingyu, Li Jingya, You Zhixin and Zhang Mengjie; video editors: Zhang Yucheng and Zheng Qingbin)■