China's 2026 economic push targets domestic demand and rural growth
China has outlined plans to boost domestic demand and consumption in 2026, following a year of strong growth in retail and services. The National People's Congress (NPC) announced the measures ahead of its annual session in Beijing, with a focus on improving living standards and economic resilience.
Total retail sales of consumer goods exceeded 50 trillion yuan ($7.2 trillion) in 2025, with consumption accounting for over half of the country's economic expansion. Authorities now aim to build on this momentum by expanding trade-in schemes, enhancing service sectors, and supporting rural development.
In 2025, China's consumption structure showed clear signs of upgrading. Retail sales of services grew by 5.5%, while sectors like culture and tourism saw double-digit increases. The Hainan Free Trade Port became a key destination for inbound tourism, with tax-refunded goods sales nearly doubling compared to previous years.
The government also expanded trade-in programmes and digital platforms to meet diverse consumer needs. These efforts helped push total retail sales past the 50 trillion yuan mark, reinforcing consumption's role as the primary driver of growth.
Looking ahead to 2026, officials will prioritise domestic demand by increasing the supply of high-quality goods and services. New laws on social assistance, medical security, and childcare are expected to improve livelihoods and encourage spending. The NPC Standing Committee will also work on creating a unified national market and advancing rural revitalisation.
To further link economic growth with public welfare, policies will promote better employment opportunities and higher incomes for both urban and rural residents. The goal is to ensure that rising consumption directly benefits households across the country.
China's 2026 strategy centres on strengthening consumption as a pillar of economic stability. With retail sales already surpassing key milestones and service sectors expanding, the focus now shifts to sustaining growth through improved services, trade incentives, and rural development. The measures aim to create a more balanced and inclusive economy in the coming year.
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