China’s economy is shifting toward expanding domestic demand by boosting incomes and improving the supply of quality goods and services to stimulate consumption.
Lao Huang, I saw the news these past couple of days saying that in 2026 China’s economy will rely more on domestic demand. What do you think?
That’s the overall direction. External uncertainty is high, and relying only on exports isn’t stable. The key is getting ordinary people to feel confident about spending.
From a market perspective, it’s not that people don’t want to buy—they’re worried their income isn’t stable, so they feel they have to save.
That’s why this time it’s stated very clearly: they want to formulate an income-growth plan for urban and rural residents. That wording wasn’t used before.
If incomes can really rise, companies will feel less pressure too—they won’t have to fight price wars every day.
Exactly. The government is also pushing back against "involution" now, guiding companies to shift from competing on price to competing on quality.
I’ve noticed concerts and sporting events are doing really well, which shows the demand is actually there.
As long as policies are implemented properly—making incomes more stable and protections stronger—this domestic-demand market will gradually heat up.
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