SCIO press conference on China's economic performance in H1 2026

Nanfang Daily, Nanfang Plus:

Since the beginning of this year, various government departments and localities have stepped up special initiatives to boost consumption. How did service consumption and goods consumption perform in the first half of the year? Thank you.

Mao Shengyong:

Thank you for your question. In the first half of this year, total retail sales of consumer goods and services increased 2.7% year on year. In June, total retail sales of consumer goods rose 1% year on year, reversing the previous month's decline. Specifically, there were several characteristics worth noting.

First, service consumption maintained sound growth momentum. As living standards rise, service consumption has become an increasingly important channel for unleashing consumption potential and creating room for further spending. In the first half of the year, retail sales of services grew 5.3% year on year, 4.2 percentage points faster than retail sales of goods. The culture and tourism market remained buoyant. In the first half of the year, retail sales of tourism consulting and rental services rose 11.3% while those of cultural, sports and recreational services rose 10.4%. Data showed sales revenue from tourism and entertainment services increased 12.3% year on year. Services are taking a growing share of household spending. In the first half of the year, the share of per capita consumer spending that went to services rose 0.2 percentage point from a year earlier. Everyone wants to see consumption expand. That requires improving the quality and scale of goods consumption while tapping deeper into the potential of services consumption.

Second, goods consumption improved in quality and expanded in scale. In the first half of the year, total retail sales approached 25 trillion yuan, with retail sales of goods exceeding 22 trillion yuan. Some upgraded consumer goods grew rapidly. Among enterprises above designated size, retail sales of cosmetics increased 6.3% year on year, and sales of communication equipment rose 14.4%. Digital and green consumption released growth potential at an accelerated pace, and more smart and green products entered people's lives. In June, new energy vehicles accounted for 62.8% of retail auto sales, the third straight month above 60%. New retail formats built around quality and digital convenience grew quickly. Among enterprises above designated size, retail sales at warehouse membership stores and unstaffed stores both increased more than 25%, while instant retail transactions posted double-digit growth.

Third, new consumption growth drivers gained momentum. Rural consumption remained active. As rural revitalization advances, county-level commercial networks and distribution facilities continue to improve, sustaining consumer vitality in rural markets. During the 14th Five-Year Plan period, the average annual growth rate of retail sales of consumer goods in rural areas was about 0.3 percentage point higher than that in urban areas. This trend continued in the first half of this year, with rural retail sales growing 1.3 percentage points faster than urban sales. New forms of consumption grew rapidly. In the first half of the year, transaction volumes on cultural and sports service platforms increased 9.7% year on year. Data showed sales revenue from immersive experiences such as live performances and museums grew 28.3% and 24.6%, respectively, in the first half of the year. Inbound consumption remained strong. China has optimized its visa-free entry policy and improved supporting services such as tax refunds for departing tourists and mobile payments for overseas visitors, making travel and shopping in China easier. In the first half of the year, about 17.82 million foreign visits were made under visa-free entry, up 30.6% year on year. Customs oversaw 19.9 billion yuan in duty-free purchases in Hainan, an increase of 18.8%.

Looking ahead, China is well placed to expand and upgrade consumption. China has a large population of 1.4 billion, a growing middle-income group and per capita GDP approaching high-income levels. In terms of development stage, the consumption structure is in a stage of transformation and upgrading, with household demand rising for high-quality goods and for leisure, cultural and entertainment services. As the unified national market takes shape, the supply of high-quality consumer goods has increased and policies to boost consumption are taking effect. A newly issued five-year plan for expanding consumption will also support consumption growth and help lift both its scale and quality. Moving forward, we must focus on enhancing households' willingness and ability to spend, continuously optimizing the consumption environment, and using a range of measures to shore up the foundations for consumption growth, so as to better unleash the potential of China's vast market. Thank you.

Shou Xiaoli:

Due to time constraints, we will take two more questions.