China announces 'most comprehensive' 30-point plan to boost consumption
What's the story
China has unveiled an extensive action plan to increase consumer spending, its widest in more than 40 years.
The strategy seeks to address key areas including increasing workers' incomes and improving the consumption environment.
The 30-point plan was jointly released by major Chinese government bodies and the ruling Communist Party, in a significant move toward transforming China's economy to a consumption-driven growth model.
Policy details
Direct link established between consumption and affordable childcare
For the first time, China's consumption action plan connects consumer spending to affordable childcare access and the country's ongoing property crisis.
Shi Lei, an economics professor at Shanghai's Fudan University, called it "the most comprehensive directive on stimulating consumption since China's reform and opening-up [in the late 1970s]."
He added it was unprecedented to address all factors that may influence spending, professionally.
Economic strategy
China's consumption boost plan aims to stabilize expectations
The fresh consumption boost plan arrives as China is under pressure to increase domestic consumption amid an escalating trade war with the United States.
The conflict has already hit China's export sector and threatens its economic growth target of "about 5%."
According to Li Chunlin, vice-chairman of the National Development and Reform Commission, the plan's goal is "to make people more confident to spend and more stable in their expectations."
Plan
Plan vows to raise wages and alleviate household financial constraints
The plan's vows to raise wages and alleviate household financial constraints are intended to boost consumer confidence, making workers more willing to spend rather than save, Shi said.
According to the policy, authorities would support "reasonable growth" in workers' salaries by increasing employment, raising the minimum wage, and enforcing the paid yearly leave system.
The strategy also includes initiatives to support the stock and real estate sectors.
Impact
China's retail sales increased by only 3.5% last year
If implemented successfully, the strategy will assist China's economy move to a consumption-driven development model, according to Lynn Song, ING's senior economist.
"The direction looks positive, but implementation is everything. It's far from certain that these measures will be sufficient to propel consumer confidence back to healthy levels," he said.
Per National Bureau of Statistics, China's retail sales increased by only 3.5% last year compared to 2023.
The growth rate accelerated to 4% in the first two months of 2025.