Story perspectives

China Shifts Economic Focus to Boost Domestic Consumption

10/31/2025

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Summary

Story summary

China is shifting its economic focus from investment and exports to domestic consumption in its 2026-2030 plan.
This change aims to address vulnerabilities revealed by the property market crisis and trade tensions with the U.S.
Analysts project household consumption could rise from 40% to 50% of GDP over the next decade.
The government plans to enhance social spending and improve income distribution to stimulate demand.
Challenges include low consumer confidence and a slow-growing services sector, with details to be revealed in March.

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Story summary

China is shifting its economic focus from investment and exports to domestic consumption in its 2026-2030 plan.
This change aims to address vulnerabilities revealed by the property market crisis and trade tensions with the U.S.
Analysts project household consumption could rise from 40% to 50% of GDP over the next decade.
The government plans to enhance social spending and improve income distribution to stimulate demand.
Challenges include low consumer confidence and a slow-growing services sector, with details to be revealed in March.