China sees vast domestic demand, strong momentum for consumption

People view new energy vehicles at a shopping mall in Chaoyang District of Beijing, capital of China, Feb. 11, 2026. (Xinhua/Ju Huanzong)

Expanding domestic demand and boosting consumption are key focuses of the ongoing "two sessions" — the annual meetings of the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

In 2025, China's consumption market continued to grow steadily. For the first time, total retail sales of consumer goods exceeded 50 trillion yuan ($7.24 trillion), with domestic demand contributing 67.3 percent to economic growth.

During the Spring Festival holiday, from Feb. 15 to 23, scenic areas operated by Wuxi Lingshan Cultural Tourism Group received 778,000 tourist visits, up 12 percent year on year on a comparable basis, according to Wu Guoping, chairman of the strategic planning committee of the group.

Wu, an NPC deputy, said cultural and tourism consumption connects a long industrial chain and spans many sectors. A single trip links multiple areas of spending, including catering, accommodation, transportation and retail. The constant emergence of new business models in the culture and tourism industry, along with the ongoing innovation of consumption scenarios, is injecting strong momentum into economic development.

Ice and snow tourism has become a vivid example of efforts to expand domestic demand and boost consumption. Fan Qinghua, secretary of the Communist Party of China (CPC) Daxing'anling Prefectural Committee in northeast China's Heilongjiang Province and an NPC deputy, said the prefecture has turned tourism rooted in its distinctive local culture into a "green engine" driving domestic demand. In 2025, the prefecture received more than 5.3 million tourist visits.

The trade-in programs for equipment upgrades and consumer goods are helping drive market growth. Zhang Zhuang, secretary of the CPC Liuzhou Municipal Committee in south China's Guangxi Zhuang Autonomous Region and an NPC deputy, said Liuzhou launched a trade-in program for home appliances and digital and smart products on Jan. 1, 2026. As of March 2, the city had recorded 42,500 trade-in transactions, up 29.6 percent year on year.

The continuous emergence of new consumption scenarios, business formats and business models is boosting consumers' willingness to spend, fostering a virtuous cycle in which new demand drives new supply, and new supply in turn creates fresh demand.

In east China's Jiangxi Province, the integrated development of cultural tourism and other industries is gaining momentum. Mei Yi, director of the Jiangxi Provincial Department of Culture and Tourism and an NPC deputy, said cultural and tourism consumption has become an important driver of domestic demand and consumption growth in the province. In 2025, Jiangxi issued consumption vouchers worth nearly 100 million yuan.

In rural areas, green consumption has opened up new space for economic growth. Zhang Tianren, secretary of the Party committee in Xinchuan village, Changxing county, Huzhou city, east China's Zhejiang Province, chairman of Tianneng, a green energy system solution provider, and an NPC deputy, noted that energy storage systems are entering more and more households. Meanwhile, new business formats such as new energy science and technology museums, village cafes and shared farms are emerging as new consumption hotspots.

He added that lucid waters and lush mountains are not only scenic assets but also venues for green energy applications, helping drive growth in rural guesthouses and specialty agricultural products.

Zhang Tianren said his company is helping bring affordable, clean electricity to rural households through a model that integrates new energy with rural development.