Spring Festival celebrations to amplify consumption

Economists say the early consumption surge reflects the combined effects of policy support, longer holidays and evolving consumer preferences.

The Central Economic Work Conference held in December placed expanding domestic demand as the top priority of China's economic policy in 2026, with multiple consumption-supporting policies already rolled out or in the pipeline.

Su Jian, a professor at Peking University's School of Economics, said consumption growth has been most visible in services and fast-evolving consumer electronics, including tourism, cultural products, sports and entertainment. Rapid upgrade cycles, he added, continue to support demand for electronics.

Since last year, targeted consumption-boosting campaigns have delivered tangible results. In 2025, trade-in-related sales exceeded 2.6 trillion yuan, benefiting more than 360 million consumer transactions. Optimized trade-in programs introduced in 2026 are now translating into concrete market activity across regions.

International observers have also noted structural changes underway. In its latest flagship annual report, global consultancy Roland Berger said China has entered the "consumption 4.0" era, characterized by resilience.

China's consumption structure is shifting rapidly from survival-oriented spending toward development — and experience-oriented demand, the report noted. By elevating domestic demand expansion to a strategic priority, and encouraging a move from quantitative satisfaction to qualitative enrichment, policymakers are using consumption upgrading to drive supply-side innovation and support high-quality growth.

Boosting consumption, policymakers emphasize, is not a short-term fix, but a long-term strategy.

A State Council executive meeting held on Jan 16 reviewed progress in the consumption-boosting campaign and outlined further steps to cultivate new growth points in service consumption.

The meeting called for improving long-term mechanisms for promoting consumption, raising urban and rural household incomes, implementing the paid leave system and removing unreasonable restrictive measures for consumption.