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China has rolled out a comprehensive national strategy aimed at optimizing the match between the supply and escalating demand for consumer goods, a critical initiative designed to unlock the full potential of its massive domestic market and provide sustained vitality for the world’s second-largest economy. The plan, jointly unveiled by the Ministry of Industry and Information Technology (MIIT) and five other key government agencies on November 28, outlines detailed measures to energize consumption sectors, promote industrial modernization, and enhance the quality and diversity of available products through 2030.

This policy reflects Beijing’s sustained focus on making domestic demand the primary engine of economic growth, particularly as final consumption expenditure contributed 53.5% to China’s economic growth in the first three quarters of this year, significantly up from 44.5% for all of 2024. The strategy emphasizes a coordinated approach to expanding domestic demand while deepening supply-side structural reform.

Fostering New Consumption Ecosystems

The core of the new plan centers on cultivating emerging consumption categories and elevating product standards. Key measures include fostering novel sectors such as smart homes and green construction materials, promoting the upgrading of consumer durables in rural areas, and increasing the availability of specialized items, ranging from winter sports equipment and popular toys to essential supplies for infants and the elderly.

MIIT deputy head Xie Yuansheng recently noted that China’s consumer goods industry has entered a new phase where quality is intrinsically linked to value. He stressed that improving supply-demand synchronization is the most effective way to unleash the nation’s immense spending power.

High-value, specialized markets are targeted for rapid expansion. By 2027, the plan aims to form three consumption sectors, each exceeding a trillion yuan (approximately $141.24 billion): elderly care products, intelligent connected vehicles (ICVs), and consumer electronics. Furthermore, the government intends to foster ten additional consumption hotspots, each projected to reach 100 billion yuan in value, covering areas such as smart wearables, cosmetics, fitness equipment, and pet-related goods.

Driving Industrial Upgrading and Virtuous Cycle

Analysts view the policy move as vital for long-term economic health. Liu Xiangdong, a researcher at the China Center for International Economic Exchanges, emphasized that aligning supply and demand will spur industrial upgrades. This, he argues, will create a “virtuous cycle” where new demand stimulates supply-side innovation, ensuring positive reciprocal actions between consumption and investment.

Boosting consumption is a central pillar of China’s policy agenda for 2025 and is reinforced by preliminary recommendations for the 15th Five-Year Plan (2026-2030). These documents indicate that Beijing aims to substantially increase the share of household consumption in GDP, solidifying domestic demand’s role as the principal driver of growth over the next five years.

Previous government efforts to stimulate spending have already yielded results. An expanded consumer goods trade-in program, coupled with increased consumer finance and enhanced employment support, has stimulated significant sales. The trade-in program alone has driven over 2.4 trillion yuan in cumulative sales of products like new energy vehicles and home appliances during the first ten months of this year. Supported by these initiatives, retail sales, a key indicator of consumption health, maintained a stable 4.3% year-on-year growth during the January-October period.

The latest plan signals a proactive pivot toward targeted, high-quality growth, ensuring that China’s manufacturing base is better equipped to meet the increasingly sophisticated needs of its rapidly evolving consumer base.

A groundbreaking exhibition in Beijing is illuminating the intertwined history of global anti-fascist resistance, tracing the journey of the International Brigades from the Spanish Civil War to China’s War of Resistance Against Japanese Aggression. Titled “For a Common Cause,” the display at the Museum of the Communist Party of China (CPC) synthesized two seemingly disparate battlefronts, underscoring the enduring spirit of international solidarity that defined the mid-20th century struggle against totalitarianism. Launched in August 2025 to commemorate the 80th anniversary of the victory in the Chinese People’s War of Resistance, the exhibition presents a comprehensive narrative through more than 260 photographs, 150 artifacts, and historical footage.

The exhibition, which will run through the end of 2025, marks the first time China has explicitly contextualized these two theaters of war within a single space, according to exhibition planner Zhao Jiaojian. The display opens with the plight of the International Brigades, the collective of over 40,000 volunteers from 50 nations who mobilized between 1936 and 1939 to defend the Spanish Republic against fascist forces led by Francisco Franco, often supported by Italy and Nazi Germany.

Chinese Volunteers in Spain

While the battles of Madrid and Jarama are widely celebrated, the exhibit highlights a lesser-known facet: the participation of over 100 Chinese nationals, many of whom were CPC members. A key figure featured is Xie Weijin (alias Lin Jishi), a multilingual veteran who served as the political commissar of an artillery brigade. Xie, who fought in pivotal Spanish engagements and established an orphanage for war-orphaned children, encapsulated the global nature of the fight.

“The Spanish and Chinese peoples are in a very tense phase of struggle,” Xie famously stated in 1938, underscoring the revolutionary wars for national and social liberation occurring concurrently across continents. The exhibition displays a replica of the red banner sent by CPC leaders to the Spanish volunteers that bore the inscription: “Unite the peoples of Spain and China! Down with the common foe of mankind — the Fascists!”

Jiang Ying, a researcher at the Academy of Military Sciences, emphasized that the actions of figures like Xie demonstrated “a commitment to justice that crossed national borders, and constituted an indelible chapter in the global fight against fascism that should never be forgotten.”

The Eastern Shift of Solidarity

As the Spanish Civil War concluded, the anti-fascist momentum shifted eastward. Chinese volunteers returned home to join the resistance, while other international fighters redirected their efforts to China, which had emerged as the primary Asian theater of the World Anti-Fascist War.

The exhibition dedicates significant space to these international contributors, perhaps none more recognizable than Canadian surgeon Norman Bethune. After his pioneering mobile blood-transfusion service in Spain, Bethune arrived in North China in 1938, where he streamlined battlefield medicine and became a celebrated figure for his tireless dedication to saving lives near the front lines.

The story of international support extends far beyond medical aid. It includes Hungarian-American photographer Robert Capa, who captured the war’s harsh realities in 1937, and Dutch filmmaker Joris Ivens, whose 1938 documentary The 400 Million was instrumental in galvanizing Western sympathy for China’s struggle.

Visitors, such as doctoral student Lin Tao, expressed profound appreciation for the dual narrative. “In this exhibition, I can clearly see how the Chinese people assisted foreign revolutionaries and how foreign revolutionaries assisted the Chinese people,” Lin noted, reflecting the reciprocal nature of the global anti-fascist front.

The display reinforces China’s enormous contribution to the Allied victory, noting that China was the first nation to take up arms, tying down over half of Japan’s overseas forces at the cost of 35 million casualties. By highlighting this global tapestry of resistance, the exhibition seeks to deepen the understanding that China’s sacrifice received extensive, yet vital, international support. As planner Zhao Jiaojian stated, China will continue to cherish these contributions and “strive tirelessly to build a brighter future for humanity,” working hand-in-hand with the world.

China’s retail landscape is undergoing a profound transformation, shifting from mere transactional buying to the pursuit of emotional fulfillment, a core trend positioning domestic spending as a crucial force for economic growth. As the nation seeks to bolster internal demand, the strategic evolution of commercial spaces—integrating technology, culture, and social connectivity—underscores a pivotal new direction in consumer behavior and market strategy, particularly within its bustling shopping centers.

Malls Become Social Destinations

Shopping malls across major Chinese cities are actively repositioning themselves, moving beyond traditional retail blueprints to become multifaceted social destinations, or the “third space” outside of home and work. This strategic shift is epitomized by the elevation of trendy intellectual property (IP) brands, often centered on stress relief, companionship, or self-care, into prime retail locations.

In Shanghai, for example, the high-end Grand Gateway 66 integrated Pop Mart Collection, a leader in collectible figurines, and its first jewelry store, Popop, onto the first floor alongside established luxury jewelers. Nicholas Poon, general manager of Grand Gateway 66, confirmed that the accessories concept stood out, and Popop’s initial sales significantly outperformed expectations.

“Brands that master emotional value have seen a rise in popularity,” Poon noted. He highlighted that these IP-driven consumer experiences effectively draw younger clientele and boost foot traffic for adjacent businesses, such as catering tenants.

This transformation focuses on curated ambiance and immersive experiences rather than just product mix. Jacky Zhu, head of retail research for China at JLL, explained that this competition is now centered on providing emotional connections. By refining public areas, incorporating interactive zones, and hosting thematic markets, malls create environments conducive to socializing and self-renewal, thereby prolonging customer stays.

Integrating Culture and Technology

The shift is particularly visible in successful redevelopment projects. In Hangzhou, Zhejiang Province, the Gonglian City Center near West Lake—once a simple clothes market—has been reinvented as a modern center spotlighting popular IP products and unique entertainment scenarios.

“Our brand curation is far more flexible and aligned with the cultural pulse,” said Wang Yongqiang, the mall’s deputy general manager. By championing innovative brands and designing engaging social spaces, the center generates an atmosphere that resonates deeply with visitors. This strategy is proving lucrative, with the Gonglian City Center projected to report retail sales of approximately one billion yuan (about $141.09 million) this year, marking an average annual growth of 20% since 2019.

Customers acknowledge the drawing power of the overall atmosphere. “We come here mainly to hang out and maybe pick up a few fun things,” commented Miao Zhiyue and Shao Wei, emphasizing their willingness to spend on goods that offer genuine emotional benefit.

The integration of technology further enriches this experience. Leveraging Hangzhou’s status as a tech hub, the Gonglian City Center offers cultural services like immersive VR experiences. One popular offering, provided by Times Light Field, transports users into the world of the animated blockbuster “Chang An,” allowing interaction with legendary Chinese poets. Chow Cheng, manager of the VR provider, observed that the experience often acts as a sales driver, prompting customers to purchase related cultural products afterward.

Policy and Future Outlook

Experts view this trend as aligning with China’s broader shift toward services and experiences. Zhang Linshan, a researcher at the Academy of Macroeconomic Research, stated that emotional consumption fulfills primary psychological needs and redirects spending toward personal well-being. Emerging sectors, including AI companionship and emotional support services, are creating new consumption scenarios through cultural and technological fusion.

As the government seeks to expand domestic demand, analysts anticipate stronger policies to stimulate this consumption trend. The Communist Party of China Central Committee’s recommendations for the upcoming 15th Five-Year Plan (2026-2030) call for a notable increase in the GDP share of household consumption and strengthened inclusive policies benefiting consumers. To fully harness this potential, a coordinated strategy encompassing diversified market supply and institutional safeguards will be essential, ensuring that the pursuit of emotional fulfillment continues to unlock China’s vast consumer capacity.