China's Consumption Drives Economic Growth: Smart Homes and New Scenarios Emerge

China's retail sales of consumer goods grew 5% in the first half of 2025, driven by government-backed initiatives and new consumption trends. The consumer goods trade-in program has spurred purchases of over 109 million home appliances, and consumers are increasingly embracing high-tech and sustainable products. Service consumption has also grown rapidly, with an average annual rate of 9.6% from 2020 to 2024. The government's policy push aims to stimulate consumption and upgrade people's quality of life.