The domestic demand strategy is being further upgraded, with a “people‑centered” approach unlocking new dividends from the vast market.

From supporting the development of high‑quality outdoor‑sports destinations to refining duty‑free‑shop policies and launching initiatives to upgrade urban commerce, government ministries have rolled out a series of new measures to boost domestic demand within just a few days. Meanwhile, businesses are targeting key sectors such as education, elderly care, healthcare, and cultural tourism, ramping up investments and seizing emerging opportunities. As the Fourth Plenary Session of the 20th CPC Central Committee outlines a new development blueprint for the 15th Five‑Year Plan period, the detailed roadmap for expanding domestic demand in this new phase is now being fully implemented.

  The “Proposal of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development” (hereinafter referred to as the “Proposal”), adopted at the plenary session, places “persisting in expanding domestic demand” in a pivotal position, explicitly calling for “closely integrating measures that benefit the people and stimulate consumption with investments in both physical capital and human capital,” and for “strengthening the endogenous momentum and reliability of the domestic major circulation.” This strategic upgrade is injecting sustained vitality into an ultra-large‑scale market and will also give rise to multiple industries each worth trillions of yuan.

  Clarifying the strategic cornerstone: “people’s livelihood” has become a key keyword.

  People’s wellbeing is paramount, and the strategy of boosting domestic demand continues to be upgraded. According to Chen Lifen, Director of the Market Circulation Research Office at the Institute for Market Economy of the Development Research Center of the State Council, during the 15th Five-Year Plan period, expanding domestic demand was established as a strategic cornerstone, playing a pivotal role in strengthening the domestic circulation and enhancing the endogenous drivers of economic growth. “The close integration of ‘improving people’s livelihoods’ with ‘stimulating consumption,’ coupled with an emphasis on balancing both ‘goods’ and ‘people,’ aims to bolster residents’ purchasing power and willingness by solidifying the foundations of people’s wellbeing—marking a new stage in China’s efforts to expand domestic demand, one that places greater emphasis on quality and structural improvement.”

  By addressing both people’s livelihoods and the demand for consumption upgrading, the “Proposal” provides guidance for expanding domestic demand in China’s new stage. “This is not only necessary for accelerating the strategic layout of the domestic major circulation, but also essential to meet the needs of consumption upgrading and to drive innovation and high-quality development. During the 15th Five-Year Plan period, greater emphasis will be placed on the mutual reinforcement of investment and consumption, which will help alleviate the structural imbalances between supply and demand arising from insufficient effective demand and the mismatch between consumption upgrading and high-quality supply,” said Yuan Haixia, Dean of the CCXI Research Institute.

  Specifically, with regard to boosting consumption, the “Proposal” calls for “expanding the supply of high-quality consumer goods and services,” “creating a number of new consumption scenarios that are widely influential and highly visible,” “strengthening inclusive policies that directly benefit consumers,” and “increasing government funding for social welfare expenditures,” among other measures.

  With regard to expanding effective investment, the Proposal explicitly states that “investment should maintain reasonable growth and improve its efficiency,” while placing particular emphasis on increasing the share of government investment in areas that enhance people’s livelihoods, optimizing the spatial layout of infrastructure and public service facilities, and strengthening investment in human resource development and the all-round development of individuals.

  Zheng Zhajie, Secretary of the Party Group and Director of the National Development and Reform Commission, stated, “China’s annual fixed‑asset investment has reached 50 trillion yuan, yet there remain substantial tasks in improving people’s livelihoods, addressing weak links, and fostering new drivers of growth. We must ensure that funds—especially government capital—are allocated more effectively to priority areas of development and directed toward enhancing the well‑being of the public.”

   Consumption and investment reinforce each other, highlighting the advantages of an ultra-large-scale market.

  With a clear direction, implementation is key. According to reports, the National Development and Reform Commission recently released the first list of regions designated for high-quality outdoor sports destination development, which will leverage various central government funds to support the construction of complementary public service facilities and promote the deep integration of outdoor sports with tourism, culture, health and wellness, and other industries.

  The Ministry of Commerce and four other departments have jointly issued the “Urban Commercial Quality‑Improvement Action Plan,” outlining a blueprint for urban commercial development. The plan includes specific measures to enhance essential services such as elderly care and childcare. In fact, in recent years, relevant authorities have launched pilot projects in 106 communities to build comprehensive community infrastructure, upgrading more than 2,200 service facilities—including elderly‑care centers, childcare institutions, and convenience stores—thereby improving residents’ daily lives.

  While ensuring basic livelihoods, the growing demand for consumption upgrading has also become a key focus. Efforts to facilitate functional transformation, business‑format upgrades, and vitality enhancement in aging neighborhoods and old industrial areas—while diversifying commercial offerings—are gaining momentum. Moreover, by fostering the integration of the digital and real economies, the convergence of commerce, tourism, culture, sports, and health, and the blending of domestic and international markets, pedestrian streets and commercial districts are being positioned as frontlines for urban commercial innovation and transformation—key priorities in the next phase of initiatives to elevate the quality of urban commerce.

  CICC’s macro research team notes that the close alignment of “improving people’s livelihoods and boosting consumption” likely places greater emphasis on social welfare and social security sectors, such as education, elderly care, healthcare, and family‑related support for childbirth and childrearing.

  Among these trends, as “healthcare + elderly care” becomes deeply integrated and technology empowers smart aging, new business models in the silver economy are rapidly emerging. According to the latest “Report on the Silver Economy Industry and the Elderly Care Sector” released by Renmin University of China, the scale of the elderly care industry is projected to exceed RMB 10 trillion by 2030, fostering a comprehensive service ecosystem that spans home‑based, community‑based, and institutional settings.

  Enterprises are actively expanding into the consumer‑oriented sector, which has become a hotbed for investment.

  Seizing new opportunities, astute entrepreneurs have already begun proactively mapping out their strategies. These days, Yao Jinbo, Chairman and CEO of 58.com, is working diligently to further expand the company’s business footprint. In his view, the 15th Five-Year Plan tightly integrates measures to improve people’s livelihoods with efforts to boost consumption, unlocking tremendous market potential.

  “Providing for the elderly and caring for young children are not only key concerns for countless families, but also a ‘new blue ocean’ brimming with potential. Moving forward, we will actively coordinate resources across all sectors, vigorously promote vocational skills training in areas such as housekeeping, eldercare, and infant care, and leverage digital tools to enhance the industry’s operational efficiency and transparency,” said Yao Jinbo.

  Sushang Group, meanwhile, is turning its attention to investments in cultural tourism, logistics, and other sectors. From distinctive boutique homestays and luxury hotels to resort‑style real estate and health‑and‑wellness properties, the group has been steadily expanding its footprint. According to Yan Xin, Chairman of the Board of Sushang Group, “Traditional infrastructure development is evolving toward integrated urban operations, and we will continue to explore and deploy across an even broader range of fields. We will further scale up our cultural‑tourism investments, leverage smart technologies to elevate project quality, and deepen the integration of industries to build a comprehensive ‘Culture + Tourism’ value chain.”

  “Another key area of focus for us is the modern logistics system. Looking ahead to the 15th Five-Year Plan, China will build a more resilient modern logistics network, which will create significant opportunities for businesses. Leveraging our core competencies, we will prioritize and actively engage in the development of transportation networks, airports, ports, logistics parks, and smart warehousing,” said Yan Xin.

  With the coordinated efforts of policy and market forces, a new vision for development—centered on people’s well-being and driven by mutually reinforcing supply and demand—is steadily taking shape. This landscape encompasses both the untapped “blue ocean” of the silver economy and the fertile ground of cultural and tourism consumption, painting a vivid picture of a happier life while unleashing the immense dynamism of the domestic market.

  According to Wang Qing, Chief Macro Analyst at Orient Securities, during the 15th Five-Year Plan period, China will continue to shift the drivers of economic growth, placing greater emphasis on consumption as the fundamental engine of expansion while ensuring that investment in physical capital and human capital are closely integrated. “This will enable more people to directly benefit from the material and cultural gains brought about by economic growth.”

  As industry experts have noted, when the improvement of people’s livelihoods for a population of more than 1.4 billion aligns seamlessly with the expansion of domestic demand, China’s vast market potential will surge like a spring tide, injecting sustained momentum into high-quality economic development. (Reporters: Wang Wenbo, Wang Zixu)

[Editor-in-charge: Wang Mengmeng]

Source: Economic Information Daily