(Yicai) July 14 -- China aims to further strengthen consumption’s role in driving economic growth, setting a target to increase retail sales of consumer goods to about CNY60 trillion (USD8.84 trillion) by 2030 as part of its 15th Five-Year Plan.

The State Council, China's cabinet, recently published the government’s first ever five-year plan for consumption, which includes quantifiable targets such as that for retail sales and outlines specific measures to expand consumption. Sector-specific roadmaps get released alongside the broader five-year development plans.

Retail sales of consumer goods reached CNY50.1 trillion last year, and in the first five months of this year they rose 1.4 percent from a year ago to CNY20.6 trillion. Over the course of the 14th Five-Year Plan period (2021-2025), consumption contributed an average of 59 percent of economic growth, up from 49 percent during the 13th Five-Year Plan period.

The consumption blueprint identifies six major policy priorities: improving the quality and benefits of service consumption; expanding and upgrading the consumption of goods; cultivating and developing new consumption formats, models, and scenarios; boosting consumer purchasing power; improving the consumption environment; and strengthening the mechanisms and systems that promote consumption. These priorities include 28 measures.

The roadmap reflects a long-running policy goal: shifting China from an investment-driven economy toward a consumption-driven one.

To promote the consumption of services, the plan aims to expand supply in sectors including elderly care and childcare, deepen the integration of culture and tourism with various industries, and improve the quality of consumption in healthcare, sports, education, and professional training services.

For the consumption of physical goods, the plan calls for expanding the supply of affordable housing, advancing the redevelopment of urban villages and older residential areas, expanding auto purchases by innovating the entire supply chain and boosting the “aftermarket," including used-car trading, vehicle modification, and leasing, and supporting smart upgrades for home appliances and furnishings.

With regard to emerging consumption formats, the plan mandates the deeper integration of artificial intelligence and consumption. It aims to expand the availability of smart devices such as phones, wearables, and intelligent robots, while encouraging new retail concepts including the debut economy, immersive experiences, and inbound tourism spending. The government also intends to improve visa-free arrangements and tax-refund services for overseas visitors.

To support these objectives, the plan aims to eliminate unnecessary restrictions on consumption, strengthen fiscal and financial support systems, and implement paid leave policies.

Editor: Futura Costaglione