China accelerates consumption-driven growth model

By Sun Chi | chinadaily.com.cn | Updated: 2025-03-20 17:21
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Potential homebuyers look at a property model in Taiyuan, Shanxi province. WEI LIANG/CHINA NEWS SERVICE

The plan aims to better meet housing consumption needs and extend the automotive consumption chain

The plan proposes to carry out big-ticket consumption renewal and upgrading actions, including:

- Increasing support for consumer product trade-in program.

- Better meeting housing consumer demand.

- Extending the auto consumption chain.

Wu Jing, director of the Henglong Center for Real Estate, Tsinghua University:

This marks the first time that a State Council document on boosting consumption has specifically outlined concrete measures to support housing consumption. It highlights the mutually reinforcing relationship between fully unleashing the potential of housing consumption and boosting overall household consumption, representing an extension and breakthrough in the approach to stimulating consumption.

Li Yujia, chief researcher at the Guangdong Planning Institute's residential policy research center:

Housing consumption has a leading and driving role in the consumption of the whole society, which can drive the consumption of old consumer goods for new, household appliances and furniture decoration. In the special action to boost consumption, housing consumption is the most important part.

Cui Dongshu, secretary-general of the China Passenger Car Association:

The policy will activate the new momentum of automobile consumption from three aspects: promoting market expansion, breaking down trading barriers, and building a digital regulatory system. The policy not only revitalizes the stock of automobile assets, but also creates incremental service demand, which is expected to promote the transformation of the automobile industry from manufacturing and sales to ecological services and promote the expansion and quality of the trillion yuan-level automobile consumer market.

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