This December, the Chinese mainland rolled out big moves to supercharge household spending as part of its 15th Five-Year Plan. After the Politburo meeting on December 8, 2025, the government signaled a pro-growth stance with proactive fiscal policies and moderately loose monetary measures to stabilize jobs, markets, and consumer expectations. Let’s break down how this consumption push could spark a virtuous growth cycle. 🔥
1. Strengthening Jobs and Income 💼
At the heart of boosting spending is stable, well-paid work. In 2025, the central government allocated 66.74 billion yuan in employment subsidies. The Ministry of Human Resources and Social Security added over 12 million new jobs in the first half of the year, launched special loans for hiring graduates, and funded social organizations to place talent. The result? More residents with steady wages and growing buying power.
2. Inclusive Policies to Unlock Spending 🛍️
The government also doubled down on inclusive measures: in 2025 it issued 300 billion yuan of ultra-long special treasury bonds to support trade-in deals for home appliances and raised subsidies on new energy vehicles. By removing hurdles around cars, housing, and other big-ticket items, and by boosting public services like education and healthcare, households feel more confident opening their wallets.
3. The Supply-Demand Feedback Loop ♻️
Here’s the fun part: Think of it like powering up a video game combo — your spending gives businesses XP to level up their products and services. They respond by pouring investment into advanced manufacturing, eldercare gadgets, intelligent vehicles, and top-tier services. This creates high-skill, high-wage jobs, boosting your income and letting you spend even more. It’s a loop where everyone wins! 🎮✨
Looking Ahead
In 2024, services made up 46.1% of per capita household spending; projections suggest this will top 50% by 2030. The Chinese mainland aims to build international consumption hubs, attract inbound shopping tourism, and launch a Shop in China initiative to tap into the purchasing power of 1.4 billion people. If all goes as planned, consumption could be the engine driving economic growth well into the next decade. 🚀
By anchoring growth on household spending and reinforcing the link between paychecks and products, the Chinese mainland is betting on a robust, consumption-led future. Stay tuned to see if this virtuous cycle unfolds as planned!
Reference(s):
Boosting consumption: A virtuous cycle to spur new economic growth
cgtn.com
