As the Year of the Horse approaches, festive consumer spending is picking up pace across China, particularly in the capital city of Beijing. Shoppers are heading to supermarkets to purchase decorations and festive items, spurred by a robust demand leading up to the holiday season. Since the start of 2026, the Chinese market has seen a notable growth in sales across essential goods and upgraded consumer products, signaling a positive trend in consumer confidence.
In alignment with this growing consumption, China’s Ministry of Commerce (MOFCOM) has called on provincial governments to enhance the effectiveness of subsidies available through the consumer goods trade-in program. This initiative is part of a broader strategy to boost domestic spending during the Spring Festival holiday, which spans nine days from February 23. The ministry’s notice emphasized the importance of ensuring that consumers can readily access subsidies for trading in older home appliances and purchasing new digital products through various offline channels.
This newly implemented round of the consumer goods trade-in policy coincides with the peak consumption season created by the Spring Festival. A notable increase in demand for replacement purchases of home appliances and digital devices has been documented. A retail store manager named Wang from a Suning outlet in Beijing’s Chaoyang District reported a surge in consumer inquiries regarding the trade-in of appliances such as televisions, refrigerators, and rice cookers. He highlighted an example where a refrigerator originally priced around 14,000 yuan (approximately $2,028) is now available for just over 8,000 yuan due to national trade-in subsidies and consumption vouchers.
Data released by MOFCOM indicates that in January, more than 15 million units of home appliances and digital products were sold under the subsidy program, accumulating a total sales revenue close to 59 billion yuan. This trade-in initiative not only boosts retail sales but also rejuvenates sectors like dining and entertainment by drawing consumers back into physical stores.
The sustained impact of this consumer goods trade-in program showcases the potential of China’s domestic market, with experts asserting that consumption will increasingly drive economic growth and transformation. Economist Cao Heping from Peking University pointed out that domestic demand has gained significant attention from international observers. Retail sales of consumer goods rose by 3.7 percent year-on-year in 2025, reaching 50.1 trillion yuan, with final consumption expenditure contributing 52 percent to economic growth.
An action plan released in November outlines ambitious goals for optimizing the supply structure of consumer goods by 2027, including fostering consumption sectors worth three trillion yuan and establishing ten consumption hotspots valued at 100 billion yuan each. The plan also aims for an increasing contribution rate of consumption to economic growth by 2030.
Looking ahead, favorable factors such as the immense potential for consumption upgrades, effective pro-consumption policies, and improvements in the consumer environment are expected to continue supporting steady growth in consumption throughout the year, offering optimism in challenging economic times.