Head of the Consumption Promotion Department of the Ministry of Commerce discusses the situation of China's consumer market in the first half of 2026.

Since the beginning of this year, various levels of commerce departments have earnestly implemented the decisions and deployments of the Party Central Committee and the State Council, adhering to the dual-wheel drive of "policies + activities." They have deeply implemented the special action to boost consumption, optimized the policy of trading in old products for new ones, promoted the high-quality development of service consumption, carried out pilot projects with awarding invoices, introduced the 2.0 version of exit tax refund policy, built the "Buy in China" brand, and played an important role in promoting consumption in expanding domestic demand and stabilizing growth. 1. In terms of the overall structure, the consumer market has entered a stage of development where "goods + services" are equally important. In recent years, as the living standards of Chinese residents continue to improve, the consumer market has shifted from being primarily focused on goods consumption to a stage where goods consumption and service consumption are equally important. In the first half of the year, the total retail sales of consumer goods and services increased by 2.7% year-on-year, with service retail sales increasing by 5.3%, higher than the 4.2 percentage points increase in goods retail sales. The growth rate of service consumption is faster than that of goods consumption, which not only aligns with the current economic and social development in China but also reflects the continued optimization of the consumer structure and the increasing demand for quality of life among Chinese residents. 2. In terms of goods consumption, the consumer market continues to expand and upgrade with strong resilience. Despite a high base in the same period last year, the total retail sales of consumer goods in the first half of the year increased by 1.3%, with a rebound in growth in June by 1.0%. Among the 16 major categories of products above the quota, 10 categories maintained growth, with 7 categories having growth rates of over 5%. Green, smart, and healthy goods consumption demand is strong, with communication equipment retail sales above the quota increasing by 14.4%, and the retail sales of high-efficiency level electrical appliances increasing by over 30%. 3. Looking at the development prospects, consumption as the primary driving force of economic development will continue to solidify its role. In the first half of the year, final consumption expenditure drove GDP growth by 2.1 percentage points, continuously playing the role of the primary driving force of economic growth. With technological upgrades, better supply-demand matching, and more new products entering the consumer market, there will be new consumption increments while meeting the needs of a better life for the people. In addition, the county-level market in China, as well as the large consumer groups such as the elderly, youth, and children, show a significant trend in upgrading consumption demands, providing broad prospects for consumption growth. As a series of policies to promote consumption continue to take effect, and with the continuous optimization of goods and services supply, new growth points and scenes for consumption will emerge rapidly. China's huge market advantage will become more prominent, and the consumer market will continue to grow and develop, with its role as the "main engine" of economic growth becoming stronger.