From leisurely visits to parks and shopping malls to exploring vibrant night markets, music festivals and carnivals; from traditional home renovations to the rise of smart homes; and from indifference toward children's toys to the frenzy over a Labubu plush monster elf – China's consumption patterns, shaped by both government policies and market forces, have undergone a profound transformation.
Today, consumption has become the primary driver of China's economic growth and a stabilizing force for its economy.In recent months, the Jiangsu Provincial Urban Football League (referred to as "Su Chao") has emerged as a surprising phenomenon.
Originally an amateur competition, it has cultivated a vibrant atmosphere that rivals even national professional events.
The league has sparked widespread discussions across China, with its popularity soaring.
How popular is Su Chao? Each match attracts between 30,000 and 50,000 spectators, and following every city victory, online reactions flood in.For instance, following Nantong's victory over Taizhou and Nanjing's win against Wuxi on June 1, the popularity of local delicacies skyrocketed.
Searches for "Nanjing salted duck" spiked by 74 percent the next day, while "Nantong breakfast" surged by an astonishing 367 percent.
Additionally, data from Qunar, an online travel platform, revealed that hotel bookings in Jiangsu during the Su Chao league's regular season (from May to August) rose by 21 percent compared to the same period last year.In line with the success of Su Chao, various cities in Jiangsu have also launched exciting summer night activities.
In Taizhou's Jiangyan district, a food carnival has become a major attraction, with event hours extended on weekends coinciding with the Su Chao matches.
The carnival features music festivals and trendy Chinese electronic music shows, drawing an average of over 20,000 visitors per day since its launch on July 8.Boosting domestic consumptionThis sports-driven economic boom isn't limited to Jiangsu; it's unfolding across various regions of China.
Through the organization of music festivals, carnivals, infrastructure improvements and free public exhibitions, China is actively cultivating its culture and tourism sectors.In January this year, the central government issued a directive aimed at stimulating new growth points and promoting cultural and tourism consumption.
Key measures include year-round cultural and tourism events, the creation of new consumption scenarios, and the expansion of cultural and entertainment products like e-sports, immersive experiences, creative handicrafts, fitness and tours.
The plan also seeks to optimize tourism services.In addition, the government has rolled out an ambitious "trade-in" policy for consumer goods, encouraging people to buy new home appliances, cars and electronics to replace their old ones.
The initiative, which proved effective in 2024, has been expanded in 2025.
The special long-term national bonds allocated to support this program have increased from 150 billion yuan ($20.9 billion) in 2024 to 300 billion yuan this year.
Moreover, the policy also expanded the range of products eligible for national subsidies, from eight last year to 12, and gave a subsidy of up to 15,000 yuan for new energy vehicles.As a result of these policies, China's home appliance and automotive sectors are experiencing robust growth.
According to the Ministry of Commerce, in the first five months of this year, the "trade-in" policies covering cars, home appliances, digital products, electric bikes and home renovation goods led to a significant increase in sales, driving total sales to 1.1 trillion yuan.
In April, the retail penetration of new energy vehicles reached 51.5 percent domestically, up 7 percentage points from the previous year.At a press briefing on July 18, Chinese Commerce Minister Wang Wentao reported that over the past four years, China's retail sales of consumer goods have grown at an average annual rate of 5.5 percent, with total sales expected to exceed 50 trillion yuan this year.
He also highlighted that, in terms of actual purchasing power, China's retail sales have surpassed those of the United States, being 1.6 times larger."Consumption's role as both the engine and stabilizer of economic growth is strengthening, and the advantages of a robust domestic market are becoming even more evident," said Wang.Addressing structural problemsFor over 40 years, China's economic growth relied heavily on exports.
However, in recent years, expanding domestic demand has become a central focus of China's economic strategy.
Official data indicates that domestic demand contributed nearly 90 percent to China's economic growth in the past three years."As the world faces growing anti-globalization trends and increasingly complex external challenges, it is more important than ever to anchor ourselves in the vast domestic market," said Wang Bin, a professor at the National Academy of Governance.
He emphasized that constructing an internal demand system based on China's large-scale market is crucial for withstanding external risks, and that this vast market also serves as the best testing ground for technological innovation.In addition to external market uncertainties, Wang noted that expanding domestic demand is key to addressing structural challenges in China's economic development.
"China's savings rate is as high as 40 percent, yet many residents hesitate to spend or invest.
Therefore, China needs precise policies to unblock the demand-supply bottleneck and unlock strong growth potential," he explained.To this end, Wang Yiming, vice chairman of the China Center for International Economic Exchanges, suggested that the second half of the year should focus on better integrating the expansion of domestic demand with deepening supply-side structural reforms.
These include increasing residents' income, expanding public service spending and promoting service consumption.
On the supply side, efforts should focus on cutting excess production capacity, creating effective mechanisms for phasing out outdated capacity and achieving a higher-level dynamic balance between supply and demand.Wang also called for deeper reforms, such as enhancing fiscal and tax system reforms, shifting away from an investment-heavy focus toward greater consumption, accelerating the urbanization of rural populations, advancing the nationwide unified market construction, addressing the issue of "involution" in competition, and loosening market access in the service sector.