The Chinese central government has touted the success of ongoing efforts to increase consumption as a share of the national economy.
During the period from 2016 – 2020 Chinese consumer goods retail sales rose from 31.6 trillion yuan to 39.2 trillion yuan, for average annual growth of 6.5%, according to a notice issued by the Ministry of Commerce (MOFCOM) on 31 December concerning the “14th Five Year Domestic Trade Development Plan” (“十四五”国内贸易发展规划).
According to MOFCOM China has become the world’s second largest consumer goods market in the world after the US, with added value of 12.8 trillion yuan in 2020, accounting for 12.6% of GDP.
During the period from 2016 – 2020 China’s final consumption expenditures accounted for over 50% of GDP, with MOFOM hailing consumption as the “ballast stone” for the country’s economic stability.
In 2020 key domestic trade sectors accounted for 2.3 trillion yuan in tax revenues, accounting for nearly one seventh of national tax revenues. These sectors employed more than 220 million workers, accounting for nearly 30% of Chinese employment.
MOFCOM said that the Chinese central government had set the target of consumer retail sales reaching around 50 trillion yuan by 2025, with the value added of the wholesale and retail, accommodation and food and beverage sectors targeted to hit around 15.7 trillion yuan.
China has also set the goal of online retail sales reaching around 17 trillion yuan by 2025.