In a significant move to stimulate domestic demand and improve citizens' welfare, the State Council has recently approved a new five-year plan aimed at expanding consumption. The plan outlines 28 key measures focusing on major durable goods, increasing household income, and safeguarding paid leave entitlements. Over the next five years, significant changes are anticipated in areas of critical public concern such as housing, automobiles, income, and holidays.
Housing
The plan emphasizes better meeting housing consumption needs, optimizing the supply of government-subsidized housing, and tailoring policies to individual cities to increase the supply of improved housing. It also aims to standardize the development of the housing rental market. A housing quality improvement project will be implemented to construct safe, comfortable, green, and intelligent "quality homes." The plan supports the steady renovation of urban villages, dilapidated buildings, and old urban residential areas, backing residents in self-initiated upgrades and the adaptation of old homes for aging populations and smart technology. Actions to enhance property service quality and expand service offerings are also included. Reforms to the housing provident fund system will be deepened, broadening its usage scope to better meet the diverse housing needs of contributors at different life stages.
Automobiles
The policy direction shifts from managing automobile consumption through purchase restrictions to managing usage. It proposes measures to guarantee car purchase rights for families without vehicles who have long been unsuccessful in license plate lotteries, based on the duration of their wait. Differentiated management approaches for vehicle purchase quotas in urban cores versus suburbs will be explored. Nationwide, the goal is to build approximately 40 million charging infrastructure units, forming a charging service network capable of supporting over 100 million electric vehicles, including around 9 million public charging piles. To expand auto consumption, the plan promotes innovative development across the entire automobile circulation and consumption chain, facilitates the used car market, and expands aftermarket consumption in areas like car customization, leasing, motorsports, and RV camping. Pilot reforms in automobile circulation and consumption will be conducted. Cities with the capability and willingness are encouraged to take the lead in innovating and experimenting, such as by removing restrictive measures in auto circulation, invigorating the second-hand car market, improving end-of-life vehicle recycling, developing the aftermarket, and building a comprehensive vehicle lifecycle information system. Management of automobile maintenance and modification will be improved, with accelerated development of technical standard systems for new energy vehicle repairs. A tiered and categorized management mechanism for the vehicle modification industry will be established, along with technical modification standards suited to national conditions. The construction of RV camping bases will be strengthened, supporting the development of various types, grades, and distinctive self-driving and RV camping sites. Management requirements for campsites will be refined, ensuring complete supporting facilities like sanitation, and regulating tourist behavior. Support will also be given for new types of motorsport activities involving new energy and intelligent connected vehicles.
Income
The plan calls for improving the policy system for income distribution based on production factors, ensuring that those who work more, possess higher skills, or are more innovative receive greater rewards. Mechanisms for determining workers' wages, ensuring reasonable growth, and guaranteeing payment will be enhanced. The adjustment mechanism for the minimum wage will be refined, with a steady increase in the minimum wage standard, alongside strengthened macro-guidance for enterprise wage distribution. The operating environment for micro, small, and medium-sized enterprises as well as individual businesses will be continuously improved. Efforts will be made to promote the sustained and healthy development of the real estate market and consolidate the stable and positive development trend of the capital market, thereby increasing urban and rural residents' property income through multiple channels. Redistribution adjustments through taxation, social security, and transfer payments will be strengthened.
Holidays
The Labor Law will be fully implemented to effectively protect workers' legitimate rights to rest and vacation. Revisions to the "Regulations on Paid Annual Leave for Employees" will be promoted, ensuring the strict enforcement of the paid annual leave system and enhancing its rigidity. Employers and employees are encouraged to combine paid annual leave with traditional festivals and local characteristic activities, arranging flexible and staggered vacations. Regions with suitable conditions are supported in promoting spring and autumn breaks for primary and secondary schools.
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