China's consumer market has solidified its role as a major economic engine, with retail sales expected to exceed 50 trillion yuan ($7 trillion) this year, Commerce Minister Wang Wentao said at a press conference on Friday.
China is summarizing its achievements under the 14th Five-Year Plan (2021–2025), highlighting key economic milestones.
Over the past four years, total retail sales of consumer goods have grown at an average annual rate of 5.5 percent, maintaining China’s position as the world’s second-largest consumer market. While China’s retail sales amount to about 80 percent of those in the U.S. in absolute terms, World Bank data indicates its purchasing-power-adjusted consumption is 1.6 times larger.
Service consumption
Service consumption has expanded rapidly, now accounting for 46.1 percent of household spending. In 2023, services trade surpassed $1 trillion for the first time. New consumption trends, including e-commerce and experiential retail, have flourished, contributing around 60 percent to annual GDP growth.
From 2020 to 2024, service consumption grew at an annual rate of 9.6 percent, outpacing goods consumption. To address supply shortages in premium services, China has eased market access. Between 2021 and 2024, China imported 7.4 trillion yuan worth of consumer goods, with its vast market playing a pivotal role in driving global growth. Tourism has rebounded strongly, with inbound visitor spending jumping 77.8 percent in 2024 to $94.2 billion.
Trade resilience
Despite global economic headwinds, China’s foreign trade has remained resilient, with goods trade continuing to rank as the world’s largest. Its share of global exports and imports has held steady at 14 percent and 10 percent, respectively. Foreign direct investment (FDI) has also exceeded expectations, reaching $708.7 billion during the 14th Five-Year Plan period, six months ahead of schedule.
Vice Commerce Minister Ling Ji noted that foreign-funded enterprises now contribute one-third of China's total trade, one-quarter of its industrial value-added, and provide over 30 million jobs. High-tech industries accounted for 34.6 percent of FDI in 2024, up six percentage points from 2020.
As domestic demand strengthens and high-level opening-up continues, China is reinforcing its role as a stabilizing force in global trade.