County-level consumption is rapidly becoming a powerful engine for expanding domestic demand in China, with recent policy support and infrastructure improvements unlocking significant market potential.

China's Ministry of Commerce and eight other government departments recently issued a joint policy document aimed at revitalizing lower-tier market vitality and boosting county-level consumption activity. The initiative introduces 18 targeted measures across four key areas: optimizing the commercial environment, diversifying consumer supply, strengthening consumption safeguards, and enhancing resource integration. Data from January to July this year shows that retail sales of consumer goods in rural areas grew 2.4% year-on-year, outpacing urban growth by 1.3 percentage points, with county and township markets now accounting for 39.1% of total retail sales. With their vast populations and diverse consumption needs, county areas have become the most promising incremental space for domestic demand expansion.

Market renewal and logistics network expansion are simultaneously enhancing the convenience and variety of county-level commercial environments. In Wenling, Zhejiang Province, a former wholesale food market has been transformed into a commercial complex featuring esports arenas and musical theater performances, successfully blending traditional market vitality with young consumers' new spending habits. Wenling has now established 14 such "township CBDs," achieving full coverage of town-level commercial centers, with commercial facility floor space per capita reaching 0.85 square meters, surpassing the average level of China's second-tier cities. Nationwide, the country has essentially completed comprehensive three-tier commercial network coverage at county, township, and village levels, with more than 3,600 upgraded county-level logistics distribution points and over 100 million parcels entering and leaving rural areas daily. As county-level commercial infrastructure transitions from basic availability to improved quality and speed, the gap between county residents and premium goods and diverse services continues to narrow, fully releasing consumption vitality that was previously constrained by inadequate facilities and limited distribution channels.

Smart products are gaining strong traction while service-oriented consumption heats up, signaling a quiet upgrade in county-level consumer baskets. Artificial intelligence and other new technologies are increasingly integrating into daily life, with innovative products and scenarios extending into county markets, accelerating demand for intelligent devices and diversified services. Many young families are outfitting new homes with AI-powered appliances, bringing "smart living" to county households at an unprecedented pace. This year, sales of AI-enabled home appliances in county markets have surged substantially, with energy-efficient products accounting for over 90% of trade-in program purchases. Beyond goods, service consumption is expanding rapidly. From smart home appliances to fitness activities, from flagship brand stores to cultural tourism experiences, county-level consumption growth is no longer just about delivering more products but about providing richer, higher-quality offerings that meet evolving demand and convert latent needs into actual spending.

County-level industries are creating a virtuous cycle connecting employment, income growth, and consumption expansion, with rural residents' per capita disposable income and consumption expenditure growth rates both exceeding urban levels in the first half of this year. In Xuyi, Jiangsu Province, the crayfish industry has built a million-mu farming base that fuels vibrant summer dining and tourism around Kexie Street. Meanwhile, in Cao County, Shandong Province, the Hanfu traditional clothing industry has provided livelihoods for nearly 100,000 people, allowing traditional culture to "go viral" through modern expression. These distinctive local industries not only create consumption scenarios but also generate employment and income. As more businesses and platforms expand into county markets, they bring job opportunities and broaden income channels, which stabilizes employment, raises income expectations, strengthens consumer confidence, and sustains ongoing market demand.

Policy support for county-level commercial development continues to strengthen across multiple dimensions. In 2025, the central government allocated 4.479 billion yuan to support 27 provinces in county-level commercial construction initiatives. Newly opened qualified chain stores can apply for entrepreneurial guarantee loans with interest subsidies, while businesses using existing properties and land for elderly care or childcare services enjoy a five-year transition period policy, and approval procedures for supermarket and convenience store openings have been streamlined. By activating existing resources, reducing financing and operational costs, and simplifying approval processes, these measures address the core concerns of businesses considering expansion into county markets. Smoother resource guarantees and lower entry barriers will help county-level commercial supply maintain sustained vitality.

County-level consumption ultimately centers on residents' daily necessities and quality of life, connecting to China's vast super-scale market. Each renovated county shopping center, each smart appliance entering a family home, and each specialized industry chain driving employment and income growth collectively contribute to the real force of domestic demand expansion. As county commercial environments improve, quality goods and services become more abundant, and the foundation for employment and income growth strengthens, county-level consumption potential will be further unleashed, making China's domestic demand growth more stable and resilient.