Last week’s Politburo meeting on December 8, 2025 highlighted new measures under the 15th Five-Year Plan of the Chinese mainland to jump-start consumption-led growth. By aligning fiscal, monetary and social support, policymakers aim to stabilize jobs, markets and expectations, creating fertile ground for a consumption boom.
Empowering households through jobs and incomes
Stable employment is a cornerstone of this initiative. In the first half of 2025, the central government allocated 66.74 billion yuan in employment subsidies, while the Ministry of Human Resources and Social Security of the Chinese mainland released 12.24 million new jobs and boosted loans to firms hiring graduates. By nurturing high-skill, high-wage sectors—from eldercare products to intelligent vehicles—authorities seek to raise household income and, by extension, consumer spending capacity.
At the same time, relaxed market access in services such as telecom, healthcare and leisure is opening new, job-rich industries. This dual push—quality supply and expanding demand—reinforces a cycle of higher incomes feeding stronger consumption.
Building confidence with inclusive policies
Proactive fiscal and moderately loose monetary policies signal a commitment to steady growth and low volatility, encouraging households to spend rather than save. The Ministry of Finance of the Chinese mainland and the National Development and Reform Commission of the Chinese mainland have earmarked 300 billion yuan of ultra-long special treasury bonds for trade-in subsidies, doubling the 2024 budget. Eligible categories rose from 8 to 12, and subsidies for new energy vehicles were raised, cutting costs for residents.
Moreover, plans to streamline regulations on automobiles and housing, implement paid staggered leave and bolster consumer rights protection aim to reduce living costs and uncertainties. By shoring up social safety nets, childcare and education, policymakers hope to deepen consumer confidence and unlock pent-up demand.
The virtuous cycle: supply meets demand
Central to the strategy is a feedback loop between consumer demand and business investment. As households spend more on higher-quality goods and services, enterprises are encouraged to invest in advanced manufacturing and premium services. This, in turn, generates better-paying jobs and further expands spending power.
Data from the Ministry of Commerce of the Chinese mainland show that service consumption accounted for 46.1% of per capita household expenditure in 2024 and is projected to exceed 50% by 2030. Initiatives to develop international consumption hubs and the "Shop in China" brand aim to tap into both domestic and inbound demand, leveraging the market potential of over 1.4 billion residents.
By weaving together employment support, confidence-building measures and supply-side upgrades, the Chinese mainland is crafting a consumption-driven growth model designed for high-quality, sustainable expansion.
Reference(s):
Boosting consumption: A virtuous cycle to spur new economic growth
cgtn.com
