Editorial | Beijing’s ambitious plan can help to prime the consumption pump

It has been described as the most comprehensive package of policies for boosting consumer spending since China’s reform and opening up.

Given the expansion of the economy in the intervening years, that is a measure of the scope and ambition of a 30-point action plan issued jointly by the Communist Party’s Central Committee and the State Council.

It is aimed at reviving sluggish economic growth by stimulating domestic spending. This follows the annual economic work conference last November, which set higher consumption as the top priority among nine major economic tasks for 2025.

This goal has become more urgent amid uncertainty created by a tariff war, trade restrictions and threats by US President Donald Trump. Meanwhile, China’s trade surplus reached nearly US$1 trillion last year.

The sweeping plan to reduce dependence on it, on top of multiple measures in recent months to stimulate spending, has so far been well received. But its effectiveness ultimately depends on implementation.

If the government is to persuade consumers to spend more, save less and steer the economy into a consumption-driven growth model, underlying issues need to be addressed, from raising workers’ real incomes to nurturing a resilient positive environment for consumption.

In that regard, the plan rightly draws a connection between consumer confidence and issues such as access to affordable childcare and the country’s long-running property crisis.