OPINION

Opinion: Beijing’s Big Bet on the Chinese Consumer

By Caixin

Published: Sep. 1, 2025 7:32 p.m. GMT+8

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In a series of high-level meetings and policy announcements, Beijing has been rolling out subsidies, cheap loans, and targeted support for service industries, all in a bid to persuade its cautious citizens to open their wallets. At a recent State Council executive meeting, Premier Li Qiang reviewed the progress of nationwide programs for large-scale equipment upgrades and the trade-in of consumer goods, while also exploring measures to unleash the potential of the sports economy.

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Beijing is rolling out subsidies, cheap loans, and trade-in programs—backed by 300 billion yuan in 2024—for equipment upgrades and consumer goods to stimulate domestic demand.
Service consumption comprised 46.1% of per capita expenditures and 63% of household spending growth in 2024, with new policies targeting industries like health, hospitality, and tourism.
Sustainable spending revival requires deep structural reforms, improved job stability, reduced costs of education/health, and narrowing the income gap to boost consumer confidence.

AI generated, for reference only

What Happened When

March 2024：: The government unveiled its Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In.

July 2024：: The National Development and Reform Commission and the Ministry of Finance jointly announced the allocation of 300 billion yuan in ultra-long-term special treasury bonds to support equipment upgrades (150 billion yuan) and consumer trade-ins (150 billion yuan).

August 2024：: A State Council opinion on promoting high-quality service consumption was released, outlining 20 key tasks.

2024：: Official data shows that spending on services accounted for 46.1% of per capita consumer expenditures and contributed 63% to the growth in overall household spending.

July 2025：: A Politburo meeting called for 'in-depth implementation of a special action plan to boost consumption' and to cultivate new growth in services.

August 2025：: Another 69 billion yuan was disbursed to support the equipment upgrade and consumer trade-in program.

Sept. 1, 2025：: As of this date, certain personal consumer loans and loans to service-sector businesses benefit from a 1-percentage-point interest rate subsidy for one year, with a possibility of extension.

2025：: A recent State Council executive meeting, attended by Premier Li Qiang, reviewed national equipment upgrades and consumer goods trade-in programs, and explored measures for the sports economy. The program accelerated this year.

AI generated, for reference only