According to data released today by the Ministry of Commerce， China’s actual purchasing power has surpassed that of the United States， and by a significant margin.
The Ministry of Commerce data indicates that from 2021 to 2024， in absolute terms， China’s total retail sales of consumer goods have reached approximately 80% of that of the United States. However， when considering actual purchasing power， and based on data and algorithms provided by the World Bank， China’s total retail sales have exceeded those of the United States， being 1.6 times higher.
A relevant official from the Ministry of Commerce stated that since the “14th Five-Year Plan” period， China’s consumer market has consistently ranked second globally in scale. Over the past four years， the total retail sales of consumer goods have seen an average annual growth of 5.5%， and this year it is expected to surpass 50 trillion RMB.
Consumption’s contribution to economic growth has averaged around 60% annually， with its role as a primary engine continuously strengthening. This highlights the significant enhancement of the advantage and vitality of China’s vast domestic market.
The Ministry of Commerce also reiterated its commitment to further stimulating the momentum of consumer development， unlocking the potential of service consumption， and amplifying the driving effect of emerging consumption. These efforts aim to comprehensively expand domestic demand and reinforce the domestic economic cycle.
Experts point out that factors such as government subsidies have encouraged a surge in consumer activity this year， particularly in vehicle and mobile phone upgrades， significantly boosting overall purchasing power. This trend reflects a growing consumer confidence and a willingness to invest in major purchases， indicating a healthy and dynamic domestic market eager for new products and experiences.
