China sets 2030 spending target to boost consumption-led growth

China has set an annual retail-sales target of around 60 trillion yuan, or about $8.85 trillion, by 2030, using its newest five-year plan to push consumption into a larger role in growth. The goal implies annual growth of about 3.7%, slower than the roughly 5% pace recorded from 2021 to 2025, but it also signals a clear effort to lift household spending from around 40% of the economy.

The State Council approved the plan, which puts elderly care, childcare, health care, culture, tourism, sports and education at the center of Beijing’s consumption push. It also calls for stronger tourism-related spending, expanded visa-free entry to more countries and more direct international flights to Europe, the United States and Belt and Road countries.

Services accounted for 46.1% of total consumption in 2025, well below the roughly 70% share in the United States, even though per-capita expenditure on services grew at an average annual rate of 8.5% from 2020 to 2025. Service retail sales rose 5.5% in 2025 from a year earlier.

The plan comes as China works to rebalance its economy after years in which exports and infrastructure did much of the heavy lifting. Final consumption expenditure contributed 52% of China’s overall economic growth in 2025, and total retail sales of consumer goods surpassed 50 trillion yuan for the first time last year. Stronger income and welfare reforms are still needed if households are to feel confident enough to spend more freely.

Beijing said the social security system will become more optimized and sustainable so people have greater confidence and steadier expectations.