China is pushing domestic market integration to lift consumption and support a shift toward higher-quality growth.
Summary:
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China is pushing to build a unified domestic market to lift consumption
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Services consumption is a key focus of the strategy
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Authorities aim to dismantle local protectionism and internal barriers
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Openness and regional cooperation remain central policy pillars
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Technology and digitalisation flagged as long-term growth drivers
China is stepping up efforts to unify its domestic market as part of a broader strategy to boost consumption and support higher-quality economic growth, with policymakers placing particular emphasis on the services sector. The message was reinforced at an APEC meeting in Shanghai, where senior finance officials outlined the government’s priorities amid a shifting domestic and global economic landscape.
The push to create a more integrated national market is aimed at removing long-standing structural frictions that have limited consumption growth. These include regional fragmentation, local protectionism and internal trade barriers, which policymakers acknowledge have constrained demand and contributed to industrial overcapacity. By improving the free flow of goods, services and factors of production across regions, authorities are seeking to unlock domestic demand as a more reliable growth engine.
Services consumption sits at the centre of this strategy. Policymakers view services as a key channel for upgrading consumption patterns, supporting employment and fostering more sustainable growth. Expanding services demand is also seen as a way to rebalance the economy away from traditional investment-led drivers toward consumption-led expansion.
Alongside domestic reforms, China is signalling continued commitment to openness. Officials stressed that further opening of the economy is essential to creating new opportunities for both China and the wider Asia-Pacific region. This includes deeper integration with regional partners, improved market access and cooperation on trade, investment and technology.
The policy messaging comes against a backdrop of heightened global uncertainty. Geopolitical tensions, supply-chain disruptions and uneven global demand continue to pose challenges for regional growth. Even so, Chinese officials struck an optimistic tone, pointing to rapid technological progress and digital transformation across the region as important sources of resilience and future growth.
Innovation, digital infrastructure and technology adoption are increasingly being framed as critical pillars of China’s next growth phase. Policymakers see these areas as enabling productivity gains, supporting new business models and strengthening the foundations for domestic consumption expansion.
Taken together, the remarks underscore a strategic shift toward structural reform and demand-side support. Rather than relying solely on cyclical stimulus, authorities appear focused on reshaping the domestic economy to generate more durable, internally driven growth, with a unified national market positioned as a central policy objective.
This article was written by Eamonn Sheridan at investinglive.com.