Following the prioritization of "building a strong domestic market" in this year's Government Work Report, the topic has again taken center stage at the recent China Development Forum 2026. Why is expanding domestic demand receiving so much attention during the "15th Five-Year Plan" period (2026-2030)? How can China leverage its massive market of over 1.4 billion people to make domestic demand a powerful engine for high-quality development?

The frequent focus on domestic demand first relates to scale. Last year, consumption contributed 52% to China's economic growth, serving as the primary driver. Total retail sales of consumer goods exceeded 50 trillion yuan for the first time, ranking among the largest globally. Service consumption expenditure per capita reached 46.1% of total spending and continues to rise.

Momentum is another key factor. In recent years, the contribution of consumption and investment to growth has generally surpassed that of foreign trade in most periods. An official from the Central Financial and Economic Affairs Commission stated at the forum that China aims to steadily increase consumption's contribution to growth. The advantages of China's super-large market are not yet fully realized, with significant potential remaining in expanding consumption—particularly services—and vast investment opportunities in urban renewal, traditional infrastructure upgrades, and new infrastructure projects.

China's massive market scale promises considerable prospects. Expanding domestic demand is not a temporary measure but a strategic move. Market access is a scarce resource, and China, with its population of over 1.4 billion—including more than 400 million middle-income individuals—boasts enormous market size. Fully leveraging this advantage to foster an economic model led by domestic demand, driven by consumption, and characterized by endogenous growth will enhance China's resilience against external challenges and boost confidence in achieving the goals of the "15th Five-Year Plan."

Consequently, China has prioritized boosting consumption, deploying substantial resources to stimulate the market. At the forum, the Ministry of Finance emphasized stronger efforts to encourage consumption through continued, targeted policies benefiting consumers directly. A 250 billion yuan ultra-long-term special government bond is earmarked for consumer goods trade-ins, while 100 billion yuan in coordinated fiscal and financial funds addresses gaps in domestic demand. These measures, combined with employment support and income growth initiatives, form a comprehensive policy package.

This year, sales of trade-in related products reached 47.623 million units, a 15.3% year-on-year increase, generating 323.26 billion yuan in revenue. Trade-in policies have extended to rural areas, where villagers enjoy instant subsidies and convenient recycling services at their doorstep. Green and smart appliances are entering households, benefiting residents and energizing the market.

With per capita GDP nearing $14,000, China is at a critical stage of consumption structure transformation. From immersive cultural tourism and concert-driven "tourism plus consumption" effects to instant and service retail making "everything home-delivered" routine; from debut economy and silver economy catering to diverse demographics to ice-snow economy and health consumption opening new avenues—digital technology and service consumption are deeply integrating, creating endless new scenarios. A dynamic and diverse China is advancing steadily, maintaining an economic trajectory toward innovation and improvement.

Advances in the new energy vehicle industry offer consumers green mobility options and spur new trends like camping economy. New infrastructure projects, such as satellite internet, integrated national computing networks, and low-altitude facilities, are turning science fiction—like drone deliveries and air taxi services—into reality. On one hand, industrial upgrades create new scenarios and supplies that align with demands for high-quality living, spurring new consumption needs, upgrading consumption patterns, and accelerating the release of domestic demand potential. On the other, the growing domestic market provides a vast arena for new technologies, industries, business forms, and models.

Boosting consumption is both a top priority and a significant challenge. This year, basic pensions for urban and rural residents and retirees have steadily increased, while the third-pillar private pension system is developing rapidly. Improvements in healthcare, elderly care, and other social safeguards are making people "dare to consume." Removing unreasonable consumption restrictions and strengthening consumer rights protection are optimizing the consumption environment, making people "willing to consume." Employment promotion and income distribution reforms are stabilizing income sources, enabling people to "afford to consume."

As household wallets thicken and concerns diminish, the consumption market can continuously unleash potential and vitality. Persisting in expanding domestic demand is vital for improving livelihoods, nurturing new growth drivers, transforming development models, and elevating the national economy to new heights. With ongoing policy support, enriched consumption scenarios, and strengthened social safeguards, China's super-large market advantage is poised to be fully harnessed, empowering consumption as the "main engine" to inject sustained, robust momentum into high-quality economic development.