China outlines measures to boost digital consumption

China's Ministry of Commerce (MOFCOM) announced on Tuesday a comprehensive package of measures to lift consumer spending, with an emphasis on digital consumption and services. Officials said that the initiatives will focus on cultivating new consumer trends and igniting market vitality.

The ministry highlighted digital consumption as a key driver of growth, pledging to strengthen policy research and accelerate digital product, services, content and channel development. Through industrial incubation, benchmark programs and technological innovation, the ministry aims to expand diverse sources of digital demand.

According to the ministry, new technologies will play a vital role in boosting consumption. It plans to foster innovative consumption scenarios that integrate online and on-site activities, showcasing artificial intelligence (AI), virtual reality and other cutting-edge applications. The goal is to create immersive, interactive and varied shopping experiences.

The MOFCOM plans to embed digital consumption themes into promotional events such as shopping festivals. Platforms and merchants will be encouraged to offer high-tech products and services with stronger added value, injecting momentum into a rapidly evolving digital market.

The MOFCOM also revealed intentions to elevate the quality of digital consumption by coordinating with other government departments, local authorities and major platforms. Special campaigns will be carried out to optimize supply, enhance service standards and cater to the public's diverse needs.

Official data show China's services consumption has been expanding swiftly, with retail services up 4.9 percent year-on-year in the first two months of 2025, outpacing the growth in retail sales of goods by one percentage point. Online retail rose 7.3 percent, reflecting robust demand for digital products and services.

Echoing the technology push, the ministry underscored its commitment to integrating AI with consumption, offering guidance for AI-focused products. It also plans to support IP consumption, encouraging spending on animation, gaming, e-sports and related merchandise, while coordinating with other agencies on regulated growth for consumer drones and low-altitude activities.