China has unveiled a 19-point action plan to upgrade its consumer goods sector, aiming to cultivate trillion-yuan consumption markets and strengthen the role of consumption in driving economic growth.

According to the plan released on November 26 by the Ministry of Industry and Information Technology (MIIT) and five other government departments, by 2027 the supply structure of consumer goods should be significantly optimized with three consumption sectors established, each exceeding one trillion RMB. Also, 10 consumption hotspots will be nurtured, each valued at over 100 billion RMB.

The plan also targets creating globally recognized, culturally rich, high-quality Chinese consumer brands. By 2030, a high-quality development pattern marked by virtuous interaction between supply and demand should take shape, with consumption contributing more steadily to economic expansion.

Central to the plan is the idea of "adaptation," meaning that producers should proactively respond to evolving consumer trends, beginning with product design. The goal is to achieve dynamic alignment between supply and demand in terms of quality, structure, and utility.

"What people want and like should guide and encourage enterprises to think, innovate, and produce accordingly," Xie Yuansheng, vice-minister of MIIT, said at a press conference. "This ensures consumers can access satisfying products and attentive services, while enterprises can offer goods that match market needs and realize value through quality."

The action plan outlines key tasks across five major areas:

· Expanding new supply by accelerating the application of new technologies and business models, including nurturing emerging industries, advancing responsive manufacturing, and deepening the integration of AI.

· Tapping into the existing potential by increasing the supply of distinctive and next-generation products, promoting greener goods, upgrading rural consumer goods and developing leisure and sports products. It also seeks to advance health-related innovations, revitalize classic Chinese brands, and expand supply for interest-driven consumption.

· Targeting segmented markets with greater precision, such as enriching products for infants and children, improving the supply of quality student goods, expanding fashion-oriented "trend" products, and optimizing elderly-friendly offerings.

· Promoting new scenarios and business formats, including encouraging the launch of first-edition products, advancing platform-based consumption, and supporting the orderly growth of shared consumption.

· Creating a sound business environment through stronger fiscal and financial support, themed promotional activities, and improved market regulation.

There is particular focus on accelerating the use of AI in consumer goods. AI integration will be advanced through both product innovation and scenario development, according to He Yaqiong, director of MIIT's consumer goods industry department.

As of June 30, China had 515 million generative AI users.

Yang Nie, deputy director-general of the Ministry of Commerce's department of market operation and consumption promotion, said the ministry will promote pilot reforms in automobile circulation, expand the used-car market, and broaden the auto aftermarket, including modification, leasing, motorsports, and RV camping.

Efforts will also focus on expanding appliance and home furnishing consumption, especially products that are green and smart.

The MIIT will work to publicize and implement the plan, strengthen coordination, and guide local governments and industry associations in carrying out the measures. The goal is to continuously foster new products, new consumption scenarios, and new consumption hotspots, further unlocking China's consumption potential.