China plans forceful measures to revive domestic demand in 2026–2030 plan

China on Tuesday pledged to roll out strong policy measures to boost domestic demand over the coming years, as authorities seek to counter a prolonged slowdown in consumer spending driven by property sector troubles and demographic pressures.

The world’s second-largest economy expanded by five percent last year, according to official data released on Monday, meeting the government’s annual target and supported largely by record-high exports. However, economists cautioned that the headline growth figure concealed deep-rooted weakness in household consumption, with consumer confidence showing little sign of recovery.

Officials said the issue will be a central focus of China’s next five-year economic blueprint for 2026 to 2030, which is expected to be approved in March. Speaking at a news conference, Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC), described the current situation as one of strong supply but insufficient demand.

Wang said the NDRC would study and draft a detailed plan to expand domestic demand during the 2026–2030 period, promising innovative policies aimed at generating new demand by developing new areas of supply.

China’s efforts to stimulate spending have been hampered by a prolonged debt crisis in the real estate sector, which has undermined confidence in property purchases, traditionally a major store of household wealth. At the same time, a shrinking and ageing population is weighing on prospects for a sustained consumption rebound.

Recent economic data underscore the challenges facing policymakers. Retail sales rose just 0.9 percent year-on-year in December, according to figures released on Monday, marking the weakest growth since late 2022, when China ended its strict zero-Covid policies.