Expanding domestic demand is one of the key focuses of the Two Sessions. As 2025 marks the final year of China’s 14th Five-Year Plan, the country prioritizes the economic tasks of “vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand.”.
China’s 14th Five-Year Plan emphasizes the strategy of expanding domestic demand, underscoring the critical role of consumption in driving economic growth and the significance of investment in enhancing the supply structure. The plan aims to build a robust domestic market, supported by strong consumer and investment demand.
According to official data, since the launch of the 14th Five-Year Plan, China’s total retail sales of consumer goods have shown consistent growth, rising from 44.1 trillion yuan in 2021 to 48.8 trillion yuan in 2024. The growth has been observed across both urban and rural regions, reflecting significant increases in consumer retail sales nationwide.
China continues to maintain its status as the world’s largest online retail market.
From 2021 to 2024, online retail sales of physical goods grew from 10.8 trillion yuan to 13.1 trillion yuan, with their proportion of total retail sales of consumer goods rising from 24.5% to 26.8%.
At the same time, China’s service consumption has been expanding, with per capita service consumption expenditure reaching over 13,000 yuan in 2024, a year-on-year increase of 7.4%. The cultural and tourism sectors have been particularly notable, with ice-snow tourism and rural tourism acting as key growth drivers. Emerging trends such as the nighttime economy and immersive experiences have further unlocked consumer potential.
The trend toward green and low-carbon consumption is gaining significant momentum. This is particularly evident in the rapid growth of new energy vehicle (NEV) sales, which soared from 3.5 million units in 2021 to 12.9 million units in 2024. Over the same period, clean energy consumption has also experienced consistent year-on-year growth.
Income plays a pivotal role in driving domestic demand expansion. China’s national per capita disposable income has experienced consistent growth, increasing from over 35,000 yuan in 2021 to more than 41,000 yuan in 2024. This upward trend has laid a solid foundation for the sustained growth and prosperity of the consumer market.
In addition to rising incomes and expanding consumption, China’s investment sector has also demonstrated consistent growth. From 2021 to 2024, the country’s fixed asset investment maintained a steady upward trajectory.
The development of new infrastructure, including 5G base stations and big data centers, is progressing steadily.
The ongoing refinement of investment structures is fueling the upgrade of domestic demand and unlocking greater consumption potential.