Efforts on to unlock consumption potential

China is stepping up efforts to improve the adaptability of supply and demand in its consumer market, as authorities move to further unlock consumption potential and support high-quality economic growth, said officials and experts.

"Adaptability means that producers proactively respond to shifting consumption trends and design products from the outset to match diverse consumer needs. It is about enabling supply and demand to meet in both directions through dynamic alignment in quality, structure and utility," said Xie Yuansheng, vice-minister of industry and information technology, at a news conference on Thursday.

"Ensuring a closer overall fit between supply and demand will help unleash consumption potential and support smoother economic circulation," Xie said.

Xie's remarks came after the Ministry of Industry and Information Technology and five other departments jointly released an action plan on Wednesday, in a bid to improve the adaptability of consumer-goods supply and demand to spur consumption.

According to the plan, by 2027 China aims to significantly upgrade its supply structure, build three consumption sectors each exceeding 1 trillion yuan ($141.2 billion), and cultivate 10 consumption hot spots worth over 100 billion yuan each. By 2030, a high-quality development pattern featuring mutually reinforcing supply and demand drivers is expected to take shape, with consumption contributing more steadily to economic growth.

The three trillion-yuan sectors include intelligent connected vehicles, eldercare products and consumer electronics, while hot spot categories span baby and children's products, smart wearables, cosmetics, fitness equipment, outdoor gear, pet food and supplies, civilian drones, trendy collectibles, jewelry and guochao (China chic) fashion.

"These priority areas reflect our assessment of consumer trends, industrial capacity and technological change, and will be the focus of cultivation in the coming years," the vice-minister said.

As one of the largest consumer categories, the automobile sector will be a key focus for expanding downstream demand, said Yang Nie, deputy director-general of the department of market operation and consumption promotion at the Ministry of Commerce.

"Efforts will include pilots for circulation reform, wider flows of used cars and the expansion of aftermarket activities such as vehicle modification, rentals, motorsports and RV camping," Yang said.

Beyond big-ticket items such as autos, home appliances and home furnishings, the Ministry of Commerce will also move to grow new forms of consumption and foster a more internationalized consumption environment, the official added.

The newly released action plan targets key areas where supply-demand mismatches persist and lays out measures across five fronts — expanding incremental growth, tapping existing market potential, developing niche markets, fostering new consumption scenarios and formats, and improving market management.

Zhu Keli, founding director of the China Institute of New Economy, said the core of supply-demand adaptability lies in the supply side's ability to precisely capture and respond to changes in consumer preferences.

One key step in this direction is upgrading industrial chains for greater flexibility — for example, platform-based production in the auto industry that enables multiple models to be made on one line, or apparel firms adopting new digital technologies to support small-batch, multicycle customized production.

"This kind of flexible supply chain allows companies to retain scale advantages while meeting niche-market needs, providing solid technical support for balancing supply and demand," Zhu said.

The action plan also calls for promoting flexible and customized production models, advancing factory-specific upgrading programs that can meet tailored and diverse needs, as well as building a fully digital chain linking user demand, intelligent design and flexible manufacturing.

PL-Universe Robotics, a manufacturer of embodied-intelligence robots for flexible production lines, recently reported that its first batch of delivered robots is already operating on home appliance production lines, performing key tasks.

"On lines producing two or more types or models of products, robots may offer clear advantages in both efficiency and cost," said Ge Jin, founder and chief operating officer of the company.

Through single-robot offline commissioning and other flexible switching methods, production lines can shift between products without downtime, enabling multicategory, small-batch, rapid-changeover manufacturing, Ge said.