China's retail sales of consumer goods rose by 4.6 percent year-on-year in the first quarter of 2025, as noted in data from the National Bureau of Statistics (NBS).

This increase marks a pace that is 1.1 percentage points higher than the growth recorded in 2024. The total retail sales of consumer goods reached 12.47 trillion yuan (approximately 1.73 trillion U.S. dollars) during the January to March period.

In March 2025 alone, retail sales reported an increase of 5.9 percent year-on-year, an acceleration from the 4 percent growth observed in January and February.

These figures highlight a robust rebound in consumer spending, bolstered by government initiatives aimed at enhancing consumption.

Online retail sales in China also experienced a significant rise, climbing by 7.9 percent year-on-year in the first quarter.

The Chinese government's consumer goods trade-in program has been instrumental in this growth, particularly driving sales of communication devices, which surged by 26.9 percent, and home appliances and audio equipment, which rose by 19.3 percent.

This year, boosting spending and expanding domestic demand has been prioritized in China’s economic agenda.

A comprehensive pro-consumption policy package was introduced last month, designed to enhance consumer confidence through measures that promote income growth and alleviate financial burdens.

Furthermore, the renewal of the consumer goods trade-in program for 2025 has increased funding from 150 billion yuan in 2024 to 300 billion yuan, supported by ultra-long special treasury bonds.

The initiative has expanded the range of eligible products to include additional electric devices and home appliances, such as smartphones, tablets, and smartwatches.

Sheng Laiyun, deputy head of the NBS, stated that the impact of these policies is becoming increasingly visible.

According to the commerce ministry, as of April 7, Chinese consumers had purchased 35.71 million units of home appliances through the trade-in program and had submitted 2.085 million applications for automobile trade-in subsidies.

Significantly, the growth in services consumption exceeded that of goods, with retail sales of services increasing by 5 percent year-on-year in the first quarter.

Notably, consumer expenditure on transportation and communications grew by 10.4 percent, while spending on education, culture, and entertainment soared by 13.9 percent, indicating a shift towards higher value and experiential consumption.

Sheng emphasized the vital role of services spending in supporting future consumption growth due to its considerable potential for expansion.

Additionally, China's gross domestic product (GDP) grew by 5.4 percent year-on-year in the first quarter of 2025, an improvement over the 5 percent year-on-year growth seen in 2024. The Chinese government's economic target for full-year growth for 2025 stands at around 5 percent.