Illustration: Tang Tengfei/Global Times

The General Office of the Communist Party of China Central Committee and the General Office of the State Council issued a plan on special initiatives to boost consumption on Sunday. The plan puts forward 30 specific measures across eight major sections, directly addressing major constraints on consumption. It demonstrates the firm determination and strong action of the Party and the government in prioritizing the expansion of domestic demand as the top focus of this year's economic work. As the first major policy document issued after this year's two sessions and a comprehensive roadmap for boosting consumption, the plan has garnered significant attention and positive feedback from both domestic and international public opinion immediately following its release. 

The South China Morning Post, citing an expert, said "this is the most comprehensive directive on stimulating consumption since China's reform and opening-up," while Lianhe Zaobao noted that "the world's second-largest economy moves to make domestic demand the main engine and anchor of economic growth." CNBC, citing analysts, stated that this initiative should help "the longer-term transition to a consumption driven economy." 

Measures such as promoting reasonable wage growth, strictly prohibiting the unlawful extension of working hours, strictly implementing the paid annual leave system, and considering establishing a childcare subsidy system have also become trending topics on Chinese social media. These policies have sparked widespread discussion and have been warmly welcomed by the public.

The introduction of the plan comes against the backdrop of the 2024 Central Economic Work Conference, which placed "vigorously boosting consumption, improving investment efficiency, and expanding domestic demand on all fronts" at the forefront of the nine key economic tasks for 2025. This year's government work report further clarifies the key aspects of boosting consumption. From this, it is evident that this initiative serves as a crucial step in implementing central policies. It is an action plan characterized by a strong sense of holistic and systematic thinking, responding deeply to the current state of the consumer market while also serving as a strategic layout based on the logic of high-quality development.

The 30 specific measures cover various livelihood issues such as employment, elderly care, healthcare, and education, while also addressing public concerns regarding wages, the stock market, and child-rearing. The plan emphasizes a "people's livelihood first" approach. For instance, the initiative to increase urban and rural residents' incomes is placed in the most prominent position, targeting not only wage and property income but also focusing on areas such as farmers' earnings and overdue payments. Additionally, the plan proposes optimizing services for both the elderly and children, expanding and enhancing policies for trade-ins of consumer goods and promoting "AI+consumption." These initiatives are expected to directly benefit hundreds of millions of households while creating space and opportunities for enterprise development. These measures are designed not only to unlock consumption potential but also to enhance people's sense of gain and happiness, making the policies both impactful and considerate.

The "people-centered" philosophy is also reflected in its emphasis on effectiveness. The plan calls for stronger coordination between fiscal, financial, industrial, and investment policies with consumption policies, stressing the need for synchronized efforts to form a cohesive force. It also requires local governments and departments to align policies with practical conditions, promptly eliminate unreasonable restrictions on consumption, and avoid one-size-fits-all or excessive regulatory measures. 
Next, various regions and departments will place greater emphasis on boosting consumption. While promoting a positive interaction between investment and consumption and further unleashing market vitality, they will focus more on enhancing consumer confidence and improving the social security system to lay a foundation for the long-term development of the consumption market. Compared to many countries that rely solely on short-term stimulus policies to boost the economy, China places greater importance on long-term planning and social equity, making its policies more sustainable.

Boosting consumption is a top priority for expanding domestic demand, and doing this well will undoubtedly create multiple positive effects. On one hand, establishing a healthier supply-demand cycle will lead to industrial upgrades and innovative development. The renewal of major consumer goods such as automobiles and home appliances will drive the green transformation of the manufacturing industry, while the enhancement of service consumption will support the prosperity of industries like culture, tourism, and health. The accelerated implementation of new technologies, such as artificial intelligence, will also generate more consumer demand. On the other hand, the increase in consumption demand will create more job opportunities and higher tax revenues, which in turn will provide more resources for public services and social security, fostering a virtuous cycle between the economy and people's livelihoods. The enormous domestic demand market formed by China's 1.4 billion population is becoming increasingly vibrant, which not only benefits China's long-term stability but also provides an inexhaustible driving force for global economic development.

For some time now, China's policies aimed at expanding domestic demand and stabilizing growth have begun to show results. Data from the National Bureau of Statistics indicates that from January to February this year, total retail sales of consumer goods increased by 4.0 percent year-on-year. The Wall Street Journal stated that China reported surprisingly robust economic activity to start the year. In the future, as the benefits of these policies are further realized, the synergy of corporate innovation, policy support, and public confidence will undoubtedly invigorate China's consumer market like a spring tide. A stronger Chinese consumer market will write an even more remarkable chapter for both the Chinese economy and the global economy.