Consumption policy shifts towards quality, services and wider geographic reach

The Ministry of Commerce (MOFCOM) intends to stimulate consumption through better supply, new retail and service scenarios, and improved commercial infrastructure. Priorities include expanding automotive consumption across the value chain, promoting smart products, improving service consumption and upgrading commercial facilities in cities and counties.

The agenda also links domestic consumption with efforts to attract international shoppers. China plans to strengthen the “Shopping in China” brand and improve the shopping experience for foreign visitors. The expansion of tax-refund shopping facilities and increased departure-tax-refund sales indicate that inbound shopping is becoming a more visible part of consumption policy.

For consumer-facing companies, the opportunity is not limited to selling more products. Demand may also develop around service quality, smart consumer goods, retail experience and distribution beyond major urban centers. Businesses will need to distinguish policy priorities from actual demand in their target customer segments.

Trade policy places greater weight on services and digital exports

MOFCOM’s stated trade agenda treats merchandise, services and digital trade as three connected pillars. For goods, priorities include developing Chinese brands, diversifying export destinations and import sources, and improving links between domestic and international markets. Cross-border e-commerce, overseas warehouses and green trade are identified as areas for further development.

The services agenda places more emphasis on exports of research and development, design, testing and maintenance, as well as cultural and travel services. Digital trade priorities include digital services, cloud computing and international data services, alongside the overseas distribution of digital content.

This direction creates a broader set of potential opportunities for foreign firms. Demand may arise from partnerships with Chinese exporters, digital-service providers and companies seeking to internationalize their offerings. However, growth in digital and services trade will remain subject to relevant market-access rules, data regulations and requirements in destination markets.

Free-trade agreements are expected to cover more areas

China intends to advance negotiations and upgrades involving partners in Asia and other regions. Priorities include moving forward with the China–ASEAN Free Trade Area 3.0, the upgraded China–Peru Free Trade Agreement, and negotiations or upgrades involving South Korea, New Zealand and Central Asian countries. MOFCOM also aims to promote the expansion and upgrading of the Regional Comprehensive Economic Partnership (RCEP).

The proposed agenda extends beyond tariff reduction. China wants future trade arrangements to address areas such as the digital economy, green development and government procurement, alongside further liberalization of goods, services and investment.

For companies, this makes trade-agreement monitoring relevant to sourcing, market-entry and regional supply-chain decisions. The business impact will depend on the final terms, implementation dates and sector coverage of each agreement. Announced negotiations should not be treated as immediate changes in market access.