China Unveils 18 Measures to Boost County-Level Consumption

China’s Ministry of Commerce and eight other government departments have jointly issued a policy document proposing 18 specific measures to stimulate consumption in county-level areas, targeting what officials describe as the country’s most important source of consumption expansion potential. The “Opinions on Further Stimulating Vitality of Lower-Tier Markets and Activating County-Level Consumption” was released on August 18, following a press conference at the State Council Information Office in Beijing.

The Scale of the Opportunity

County-level areas represent a significant share of China’s economic landscape. According to Xinhua News Agency, these regions account for approximately 90% of the national land area, 50% of the permanent population, and 40% of the economic output. Assistant Minister of Commerce Yuan Xiaoming noted that the share of county and township consumption in total retail sales of consumer goods has been steadily rising, making it “the most important source of consumption expansion potential.”

Data from January to July 2026 shows rural retail sales of consumer goods grew 2.4% year-on-year, 1.3 percentage points higher than urban areas. Rural and county-level consumption has now grown faster than or roughly equal to urban consumption for 55 consecutive months. County and township retail sales accounted for 39.1% of total retail sales of consumer goods, up 0.3 percentage points from the same period last year.

The 18 Measures

The policy document, issued by the Ministry of Commerce, National Development and Reform Commission, Ministry of Finance, Ministry of Human Resources and Social Security, Ministry of Natural Resources, Ministry of Agriculture and Rural Affairs, Ministry of Culture and Tourism, State Administration for Market Regulation, and National Financial Regulatory Administration, outlines measures across five key areas.

According to the full policy text published by China News Service, the measures focus on: supporting county-level consumption channel upgrades, promoting business format innovation and brand building, optimizing county-level goods and services supply, improving county-level distribution modernization, and enhancing consumption guarantee capabilities.

Key initiatives include deepening the “Thousands of Markets, Ten Thousand Stores” renovation program, supporting upgrades to township commercial centers and farmers’ markets, and introducing domestic and international brands to open regional flagship stores in county areas. The policy also promotes the “one license, multiple locations” system for chain enterprises and commercial individual businesses in eligible counties, and supports the expansion of domestic trend brands into county-level markets.

New Energy Vehicles and Green Products

The policy explicitly supports new energy vehicles (NEVs), green smart products, and green building materials going to rural areas, while expanding rural charging infrastructure coverage. This builds on momentum from earlier initiatives, as Shanghai Securities News reported that since NEV rural campaigns began in 2020, cumulative sales of participating models have exceeded 20 million vehicles.

The 2026 Central Document No. 1 included NEVs in key support areas for rural revitalization for the first time, and in June, the Ministry of Industry and Information Technology organized the 2026 NEV rural campaign, allowing rural consumers to apply for auto trade-in subsidies without quota restrictions.

Differentiated Implementation

Li Jialu, Director of the Circulation Development Department at the Ministry of Commerce, emphasized that China has 1,869 county-level administrative divisions outside municipal districts, and their situations vary greatly. The policy therefore adopts a differentiated approach: population-dense, economically strong counties should focus on “quality improvement” and “leadership”; counties with moderate population and economic bases should focus on “consolidating foundations and tapping potential” and “feature empowerment”; and counties with smaller populations and relatively smaller economies should focus on “safety net” and “guarantee.”

Expert Analysis

Economists view the policy as a comprehensive approach that goes beyond simple “goods going to the countryside.” Su Jian, Director of the National Economic Research Center at Peking University, told Shanghai Securities News that the characteristics of county-level lower-tier markets—wide geographical coverage, scattered distribution, and higher service costs—have led to relatively backward consumption environments that constrain county residents’ consumption. The multi-department policy “combination punch” aims to address shortcomings and expand domestic demand increment.

Hong Yong, Associate Researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, noted that this policy “releases an important signal that county and rural markets are becoming an important incremental space for expanding domestic demand.” He observed that while large city consumer markets are relatively mature, county residents’ income levels continue to rise, and consumption demand is upgrading from “whether it exists” to “whether it’s good,” with significant potential remaining in automobiles, home appliances, home furnishings, cultural tourism, and elderly care.

Liao Bo, Chief Macroeconomic Analyst at Northeast Securities, pointed to emerging consumption trends in county areas, noting that dryers, water purifiers, and dishwashers—the “new three major items”—continue to gain popularity, with green and smart products becoming new trends. Some provinces have already included coffee machines and robot vacuum cleaners in subsidy scopes.

Supporting Business Growth

As of the end of July, there were over 78 million registered individual businesses in lower-tier markets, with 86% engaged in service-related industries. Du Linya, Head of the Registration Bureau at the State Administration for Market Regulation, said the administration will carry out special actions including start-up assistance, key cultivation, capacity enhancement, digital empowerment, and innovation demonstration to help individual businesses overcome difficulties in starting up, channel access, and compliance.

The People’s Daily noted that the policy also strengthens fiscal support, improves financial services for consumption in county areas, and enhances land use guarantees for commercial development, including flexible lease terms for logistics and warehousing facilities.

Looking Ahead

The policy is designed for the “15th Five-Year Plan” period (2026-2030), with the Ministry of Commerce coordinating implementation and refining measures annually. As 21st Century Business Herald analyzed, the initiative represents a systematic effort to transform county-level consumption from “basic necessity-driven” to “quality experience-oriented,” linking commercial upgrades with industrial development, livelihood services, and employment support.

Yuan Xiaoming stated that the Ministry of Commerce will work with relevant departments to implement the opinions, continuously improve the policy system for the 15th Five-Year Plan period, and guide local governments to explore county-level consumption development models suited to local characteristics. The goal, he said, is to “truly stimulate the strong vitality of lower-tier markets and release the enormous potential of county-level consumption.”

As China’s urban markets reach maturity, the success of this policy could determine whether county-level consumption becomes the next major engine of domestic demand growth—a question with significant implications for both the Chinese economy and global markets watching its consumption trajectory.