China names ‘hotspot’ sectors in 19-point plan to spur consumption

China has launched a 19-point plan to better align the supply of consumer goods with demand, as Beijing steps up its efforts to rebalance its economy towards a consumption-driven growth model.

A document outlining the plan issued by the Ministry of Industry and Information Technology and five other departments on Wednesday laid out goals that included the cultivation of three “trillion-yuan-level consumption sectors” and 10 “hundred-billion-yuan-level consumption hotspots” by 2027.

The trillion-yuan (US$141.2 billion) sectors included products for the elderly and consumer electronics, while the consumption hotspots included fitness equipment, pet food and supplies, civilian drones and trendy toys, Vice-Minister of Industry and Information Technology Xie Yuansheng said at a news conference in Beijing on Thursday.

“These areas have demonstrated strong growth momentum and enormous development potential, giving the consumer market important characteristics such as diversification and vitality,” he said.

The plan, running to 2030, identified a range of specific sectors to promote, doubling down on areas Beijing has previously identified as key growth drivers.

For instance, in September it announced ambitions to drive consumption by building a 7 trillion yuan sports sector by 2030 through measures such as promoting more sports events and expanding the supply of sports products.