China's Ambitious Plan for Boosting 60 Trillion Yuan in Retail Sales by 2030

China's first five-year plan to boost consumption aims for 60 trillion yuan in annual retail sales by 2030. The plan focuses on increasing household income, consumption, and services like healthcare and tourism. It also plans to expand visa-free entry and promote new consumption models such as digital and AI-powered spending.

China has unveiled an ambitious plan to achieve annual retail sales of approximately 60 trillion yuan ($9 trillion) by 2030. This target is part of the country's first five-year roadmap aimed at bolstering consumption, signaling a shift from a 5% annual growth rate seen between 2021 and 2025 to around 3.7% annually moving forward.

In addition to retail figures, the plan emphasizes raising household incomes and increasing the proportion of household spending in the economy significantly from its current 40%. Despite a slowdown, policymakers seek to transform household expenditure into a more robust economic engine, focusing on services like elderly care, healthcare, and tourism among others.

The blueprint, approved by the State Council, envisions increased services spending, more international flights, and expanded visa-free entry. It calls for reforms in income and social security to balance industrial output with consumer growth while promoting innovative consumption models. The plan also stresses fiscal policies benefiting consumers directly, aiming to remove restrictive barriers in sectors like car purchases and entertainment.