Observations from Local Two Sessions: Strengthening Traditional Sectors, Fostering New Growth, and Highlighting Distinctive Features—Boosting Consumption Has Become a Key Priority for Local Economies in 2024.

 As the local Two Sessions draw to a close, the key priorities for 2024 across regions have largely been finalized. A review of government work reports reveals that boosting consumption is a central pillar of the 2024 policy agenda. Many localities have set specific targets and outlined strategies to stimulate consumer spending, with common themes including stabilizing major‑ticket purchases such as automobiles and home appliances, addressing gaps in social‑service consumption, and cultivating new growth drivers. At the same time, some regions are leveraging their unique strengths by developing distinctive cultural and tourism initiatives. Industry experts believe that these measures will not only better meet the needs of local residents but also contribute to the long-term development of the consumer market.

  A close look at the 2024 work plans across various regions reveals that most provinces have set clear growth targets for total retail sales of consumer goods (hereinafter referred to as “retail sales”). Among them, Tibet currently leads with a target growth rate of around 10%, followed by Hainan, Liaoning, Gansu, and others, which have set targets ranging from 8.0% to 8.5%. The remaining regions mostly aim for growth between 6% and 7%. Notably, these retail sales growth targets are generally higher than the respective regional economic development goals.

  Chen Lifen, a researcher at the Institute for Market Economy of the Development Research Center of the State Council, told a reporter from the Economic Information Daily that local governments, in implementing the spirit of the Central Economic Work Conference, have made expanding domestic demand and boosting consumption key priorities for 2024. “Many regions have set consumption growth targets slightly above their economic growth targets, indicating that local authorities view consumption as the fundamental driver of economic growth.”

  In terms of specific measures to boost consumption, stimulating bulk‑goods spending remains a priority, with trade‑in programs for automobiles and home appliances frequently highlighted. For example, Shanxi has proposed intensifying the promotion and adoption of methanol‑powered vehicles, supporting both first‑time and upgrade‑type housing demand, and accelerating large‑scale equipment upgrades as well as consumer‑goods trade‑in initiatives. Meanwhile, Shandong has announced plans to launch promotional campaigns for new‑energy vehicles, expedite the development of charging infrastructure in public spaces and residential communities, and organize more than 200 consumer‑stimulating events covering home appliances, furniture, and electronic products.

  Statistics show that in 2023, the national vehicle stock stood at approximately 340 million, while the total number of major household appliances—including refrigerators, washing machines, and air conditioners—exceeded 3 billion units. Industry experts believe that both automobiles and home appliances exhibit substantial demand and significant potential for replacement and upgrading, and measures such as trade-in programs will help stimulate the market while meeting consumer needs.

  Addressing shortcomings in everyday services has also become a key area of focus. In its 2024 work plan, Tianjin explicitly stated that it will expand the supply of essential public services to meet growing demand, building and upgrading a number of elderly care and childcare facilities, community service centers, and leisure and recreational spaces. Similarly, Guangdong’s government work report highlighted the province’s substantial needs in education, elderly care, healthcare, underground utility networks, and affordable housing, calling for the effective identification of emerging opportunities in these sectors to better balance consumption and investment. Hunan, meanwhile, proposed boosting and upgrading rural consumption by expanding the availability of services in areas such as elderly care, childcare, domestic assistance, and education.

  In addition, many localities have emphasized the need to actively cultivate new drivers of consumption, such as trendy domestic brands. In fact, this was also identified as one of the key priorities for boosting consumption in 2024 at the Central Economic Work Conference held at the end of 2023. Hong Yong, an associate researcher at the E‑Commerce Research Institute of the Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told reporters that these emerging growth areas are consumption trends that have emerged alongside economic and social development; they not only meet the needs of the public but also help related industries and enterprises achieve greater growth, thereby stimulating the intrinsic momentum of local consumer markets.

  Beyond commonalities, localities are also working to leverage their unique strengths, cultivate distinctive consumption offerings, and attract both domestic and international shoppers. For instance, Ningxia has proposed supporting the development of five signature urban districts and ten specialty market towns. Meanwhile, Shanghai, Beijing, Chongqing, and other cities have pledged to advance the construction of international consumption centers, with a particular focus on establishing platforms for the global debut of new products and upgrading commercial districts.

  Many regions have made the development of tourism resources and the creation of distinctive tourism brands key priorities for this year. For instance, the three northeastern provinces—recently buoyed by the surge in ice-and-snow tourism—have placed the growth of the ice-and-snow economy at the forefront. Liaoning has explicitly pledged to “strengthen and elevate the ice-and-snow economy,” with plans to build the Shenyang Wangjiawan Ice Sports Center and the Fushun Longgangshan Snow Sports Center. Heilongjiang has set out to foster the full‑chain development of ice-and-snow sports, culture, equipment, and tourism. Meanwhile, Jilin has committed to vigorously implementing a campaign to boost its tourism industry into the trillion‑yuan sector, striving to establish world‑class ice-and-snow brands, premier ice-and-snow tourism destinations, and sought‑after summer retreats.

  Regarding these local measures to boost consumption, Chen Lifen believes that the focus of regional efforts is on traditional big-ticket items and emerging forms of consumption with growth potential, while actively cultivating new drivers of growth such as “guochao” (national trend) and cultural‑tourism consumption. At the same time, by leveraging local strengths and distinctive advantages, regions are identifying and nurturing promising consumer segments, creating diversified consumption settings, multi‑tiered experiential offerings, and a new consumption landscape supported by multiple pillars, thereby attracting both domestic and international spending and fully unlocking consumption potential.

  Hong Yong analyzes that the series of measures rolled out by local governments to boost consumption aim to stimulate regional economic growth, promote high-quality development, and foster a new development paradigm by expanding domestic demand, optimizing the supply structure, and enhancing the quality of consumption. “The implementation of these measures will not only help stabilize growth in the short term but also carry profound strategic significance for long-term economic development,” said reporter Wang Wenbo.

[Editor-in-charge: Wang Jianing]

Source: Economic Information Daily