On November 26, customers were seen selecting juice beverages at the Urumqi Bonded Display and Trading Center in Sanping Farm, Twelfth Division. The center currently features 19 country-themed pavilions, offering over 20,000 products from more than 70 countries, creating a new consumption scenario where consumers can "shop globally without leaving home." So far this year, the center has attracted nearly 130,000 visitors, with sales exceeding 12 million yuan.
In the Kunyu branch of Xinhua Bookstore in Hotan, young people experienced the intangible cultural heritage technique of mulberry paper rubbing (archive photo). In recent years, the Fourteenth Division Kunyu City has focused on diverse consumer demands, actively exploring the "intangible cultural heritage + consumption" integration model. By creating themed activities, revitalizing commercial spaces, and strengthening policy support, intangible cultural heritage has found new life in modern commerce, enriching cultural experiences for residents and tourists while injecting strong momentum into cultural and tourism consumption.
On the same day, customers test-drove cars at a dealership in Huitong International Auto City in Beitun City. This year, the Tenth Division Beitun City has implemented a series of measures to boost the automotive market, including policies for trading in old cars, promotional activities by businesses, and the distribution of auto consumption vouchers. These efforts have revitalized car sales, with sales at above-scale auto dealers reaching 800 million yuan in the first three quarters, a year-on-year increase of 14.58%.
Consumption is vital to economic development and daily life. The proposals for the 15th Five-Year Plan emphasize the goal of "significantly increasing the household consumption rate and strengthening the role of domestic demand as the primary driver of economic growth," outlining specific measures to boost consumption.
What is the household consumption rate, and what changes will its significant rise bring?
**Room for Growth in Household Consumption Rate** The household consumption rate is a key indicator of a country’s internal consumption momentum, measured as the proportion of household consumption expenditure to GDP calculated by the expenditure approach. Unlike GDP calculated by the production approach, expenditure-based GDP reflects a country’s demand structure, comprising final consumption expenditure, capital formation, and net exports—the "three drivers" of economic growth. Final consumption expenditure, which includes household and government spending, reflects consumption demand.
China’s household consumption rate has shown an upward trend, reaching 39.9% in 2024, up 4.3 percentage points from 2012. However, compared to developed countries, there remains a gap of 10 to 30 percentage points, particularly in service consumption.
**How to Achieve "Significant Increase"?** Expanding domestic demand and boosting consumption are key directions. Experts suggest that insufficient effective demand is a prominent issue, requiring efforts to strengthen consumption. With over 400 million middle-income earners—expected to double in the coming years—China has significant potential to raise its household consumption rate.
**Optimizing Environment, Innovating Scenarios, Reducing Restrictions** To effectively stimulate consumption, experts recommend optimizing the consumption environment, creating new scenarios, and removing barriers. Service consumption is a critical focus, as China lags in this area compared to other nations.
Emotional consumption, a subset of service consumption, has gained popularity among young people. Over 90% of young consumers value emotional satisfaction, with nearly 60% willing to pay for it. The emotional consumption market is projected to exceed 2 trillion yuan by 2025.
The State Council has issued guidelines to foster cross-sector integration in commerce, culture, tourism, sports, health, and transportation, promoting immersive and interactive scenarios enabled by technologies like 5G and virtual reality.
Experts also advocate for removing unreasonable restrictions in sectors like automobiles and housing, improving management of new consumption models, and addressing issues like unpaid leave to protect consumer rights.
**Linking Livelihoods and Consumption** The 15th Five-Year Plan emphasizes integrating livelihood improvements with consumption promotion. Policies such as subsidies for trading in old appliances and electronics have already benefited millions, with over 300 million people claiming subsidies this year.
Consumption is closely tied to income and employment. Authorities have stressed the need to increase household income and labor remuneration, ensuring they grow in tandem with economic and productivity growth.
Beyond income, factors like childcare, education, healthcare, and pensions also influence consumption willingness. Strengthening social security, equalizing public services, and supporting family needs are essential to expanding consumption while improving livelihoods.
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