Full Breakdown
Chongqing's Economic Strategy: Embracing the "Emotional Economy" and Nighttime Consumption
1/30/2026, 12:34:26 AM
Economic Plans for Growth
Chongqing, China's largest municipality, is positioning itself to capitalize on emerging consumption trends as part of its economic strategy for 2026. Mayor Hu Henghua announced plans to enhance the city's "emotional economy," which focuses on consumer experiences that evoke feelings beyond mere utility. This initiative aligns with a broader global trend and aims to boost domestic demand, a priority for the city. The emotional economy is projected to grow significantly, with estimates suggesting it could surpass 4.5 trillion yuan (approximately S$817.5 billion) by 2029, nearly doubling from 2.3 trillion yuan in 2024.
In addition to tapping into the emotional economy, Chongqing will continue to develop its traditional manufacturing sectors, particularly its automotive industry. The city recently became China's top car producer, surpassing Shenzhen with a production of 2.78 million vehicles in 2025. This focus on both innovation and established industries reflects a dual strategy to ensure economic stability and growth.
Challenges and Growth Targets
Despite these ambitious plans, Chongqing faces several economic challenges, including weak market expectations and insufficient growth momentum in investment and consumption. In 2025, the city recorded a growth rate of 5.3%, missing its target of 6%. Mayor Hu acknowledged the need for improvements in urban property efficiency and agricultural modernization, emphasizing the importance of preventing a return to poverty.
For 2026, Chongqing aims for a growth target of above 5%, aligning with national expectations as local governments prepare for the upcoming national lianghui meetings, where broader economic goals will be discussed.
Expanding the Nighttime Economy
Chongqing is also enhancing its nighttime economy, which has become a significant driver of urban consumption. Local authorities are implementing large-scale lighting projects and cultural events to attract visitors after dark. The city’s nighttime offerings include the Two Rivers Cruise program, which saw a substantial increase in nighttime passengers, accounting for 89% of total cruise traffic in 2025.
The integration of culture, technology, and entertainment in nighttime activities is designed to enhance Chongqing's competitiveness as a major tourism destination. Notable initiatives include the 2026 Chongqing Spring Lantern Festival, which will feature interactive installations and cultural performances, further promoting nighttime tourism.
Broader Implications
Chongqing's economic strategies reflect a national trend towards boosting domestic demand and diversifying consumption. Analysts suggest that the city's focus on nighttime activities and emotional experiences aligns with broader efforts across China to stabilize and grow urban economies. As Chongqing continues to develop its economic landscape, it serves as a case study for other municipalities aiming to adapt to changing consumer preferences and enhance their economic resilience.
Official Statements & Responses
Mayor Hu Henghua stated, "We will strive to solidify our development advantages, break through bottlenecks and strengthen our shortcomings and weaknesses," highlighting the municipality's commitment to addressing its economic challenges while pursuing growth.
Verbatim Quotes
- “emotional economy” is a catch-all term that refers to a growing consumption trend describing how consumers are turning to products and experiences that go beyond utility to how they feel about their purchases. — iiMedia Research
- “Luo Zibo, a senior researcher at a tourism research base affiliated with the China Tourism Academy and director of the Cultural and Tourism Development Research Institute of Chongqing, said nighttime demand is increasingly shaped by diversity, novelty and social interaction.” — Luo Zibo, Senior Researcher, China Tourism Academy
Chongqing's multifaceted approach to economic growth, combining traditional manufacturing with innovative consumption strategies, positions it as a key player in China's evolving economic landscape.
