Question: The Chinese government has repeatedly emphasised “expanding domestic demand and building a robust domestic market”. Some international commentators, however, argue that these policies are likely to remain largely at the macro level, without concrete funding and institutional support, and may not truly boost consumption. How would you respond to that?
Embassy Spokesperson: In evaluating economic policies, the key question is whether they are supported by concrete funding, institutional arrangements, and clear implementation pathways. In this year’s Government Work Report, expanding domestic demand is clearly identified as the top priority for promoting high-quality development, and is accompanied by a whole range of fiscal, financial and institutional measures.
First, financial support is forming a tangible policy lever. The central government has allocated a 100-billion-yuan special fiscal-financial coordination fund to facilitate domestic demand expansion through market-oriented tools such as loan interest subsidies, financing guarantees and risk compensation. Financial institutions are encouraged to increase credit support for the consumption sector, which is expected to leverage financing demand on a trillion-yuan scale. In addition, 250 billion yuan in ultra-long-term special treasury bonds will be earmarked for consumer goods trade-in programmes, with a focus on driving new forms of consumption including green home appliances, smart devices and new energy vehicles. In other words, every tranche of fiscal funding is leveraged to activate the market, and every policy measure is aligned with consumption upgrading.
Second, China is creating new consumption scenarios to make demand truly visible and tangible. From developing international consumption centre cities, to building immersive commercial spaces and experience-oriented venues, and expanding service consumption in culture, tourism, sports events and the performance economy, China’s consumer market is shifting from simply “buying products” to “enjoying services” and “seeking experiences”. Meanwhile, the digital economy is driving deeper integration of online and offline consumption, fostering new business models such as livestreaming e-commerce and instant retail, and continuing to unlock the vitality of domestic demand.
Third, institutional innovation is providing a more fundamental boost. China is promoting a system of paid staggered leave, exploring spring and autumn breaks for primary and secondary schools, improving its social security system, and formulating a 2026–2030 strategic plan for expanding domestic demand. This means that domestic demand expansion is supported not only by short-term policy measures but also by medium- and long-term institutional safeguards.
At the same time, expenditure in the general public budget is projected to reach 30 trillion yuan for the first time, while central government transfers to local governments have remained above 10 trillion yuan for several consecutive years. The financial system is continuing to optimise credit allocation, providing a stable macro environment for consumption growth.
In terms of policy design, China’s effort to expand domestic demand is not a short-term stimulus measure, but a long-term strategy combining fiscal support, institutional innovation and market vitality. A Chinese market featuring vast demand, continuous consumption upgrading and sound institutional support not only serves as an important anchor for the steady growth of China’s economy, but also opens up broader development opportunities for global businesses and the world economy.
