China expects its retail sales to reach RMB 50 trillion (US$7.85 trillion) by 2025, the Ministry of Commerce said on 31st December 2021. Online retail sales are expected to account for RMB 17 trillion (US$ 2.67 trillion) of the total.
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The notice outlining China’s domestic trade for the period 2021-2025 tasks 22 state departments including the National Development and Reform Commission, the Ministry of Commerce and the People’s Bank of China with helping to establish a strong domestic market to counter turbulent external environments.
The country’s retail sales totalled RMB 39.2 trillion (US$ 6.17 trillion) in 2020, but failed to meet the target of RMB 48 trillion (US$7.55 trillion) that was set for 2020 in the previous Five-Year plan issued in 2016.
“It is urgent for us to improve the quality and capacity of consumption, to unleash the potential of domestic consumption, and to build a strong domestic market.” said the document.
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To achieve the retail sales goal outlined in the notice, the Ministry of Commerce will unveil measures to boost domestic consumption including plans to strengthen and build up China’s digital infrastructure, including 5G, the internet of things, and artificial intelligence, while encouraging rural consumption and boosting the silver economy. There are also plans to attract foreign capital to invest in the domestic trade sector.