China’s consumer market maintained steady growth in the first four months of 2026, supported by ongoing pro-consumption policies and strong demand for smart and green products, according to data released by the Ministry of Commerce.
Retail activity expanded 1.9 percent year-on-year during the January–April period, reflecting resilient domestic demand despite a mixed global economic environment.
Officials said consumption trends were increasingly shaped by technological upgrading, environmental preferences and policy incentives aimed at boosting household spending.
One of the strongest growth areas was the market for smart devices. Sales of smart glasses on major e-commerce platforms surged 5.9 times year-on-year in April, while sales of handheld cameras rose 26.9%, indicating rapid adoption of new consumer electronics.
The country’s new energy vehicle (NEV) sector also continued to expand rapidly. NEV penetration reached 61.4% in April, marking the first time the share exceeded the 60 percent threshold, underscoring China’s accelerating transition toward electrified transport.
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Rural consumption outperformed urban areas over the period. Retail sales of consumer goods in rural regions rose 2.8% year-on-year, outpacing urban growth by one percentage point and highlighting the narrowing consumption gap between rural and urban populations.
Analysts say improved logistics, rising incomes and expanded digital commerce platforms have contributed to stronger rural demand, particularly for household goods and durable consumer products.
Inbound consumption also showed strong momentum. China’s expansion of visa-free entry policies and improvements in tax refund systems helped boost spending by international visitors.
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In the January–April period, departure tax-refund sales increased sharply in major cities. Guangzhou recorded a 186% year-on-year surge, while Shenzhen saw a 145 percent increase, reflecting renewed tourist spending and retail recovery.
Policy measures remain central to sustaining consumption growth. Authorities have introduced a range of incentives, including subsidies for consumer electronics, support for green purchases and measures to stabilise employment and household incomes.
The Ministry of Commerce said these policies have helped strengthen demand for high-quality goods while encouraging consumption upgrades in both urban and rural markets.
Despite the positive momentum, economists note that the recovery remains uneven, with household spending still constrained by income uncertainty and broader macroeconomic pressures.
However, the continued expansion of e-commerce, digital payments and high-tech consumer goods is expected to support medium-term growth in the sector.
Overall, the data suggest that China’s consumption-driven growth model is gradually gaining traction, with innovation-led demand and policy support helping offset external economic uncertainties.
