Chinese household savings continue to rise. Although medium- and long-term fixed deposit rates have generally fallen below 1%, estimates by China International Capital Corporation show that about 75 trillion yuan of household time deposits will mature in 2026.
A seemingly contradictory situation is emerging: the macroeconomy is still growing, yet ordinary people do not necessarily feel their incomes improving, nor has their willingness to spend strengthened in tandem. In recent years, China’s annual two sessions have almost inevitably returned to the same set of keywords—expanding domestic demand and boosting consumption.
Policy tools aimed at stimulating spending have continued to expand. These include programs encouraging consumers to trade in old appliances and vehicles for new ones, efforts to tap the potential of lower-tier markets, and initiatives to develop service consumption. The 2026 government work report once again proposed a campaign to stimulate consumption. Consumption is expected to serve as the primary engine of China’s economic growth.
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