China plans to introduce new policies from 2026 to 2030 aimed at stimulating domestic consumption and tackling “prominent” supply-demand imbalances, with a particular focus on the services sector, the country’s state planner said Tuesday.

Chinese leaders have pledged to substantially increase the share of household consumption in the economy over the next five years, though no specific target has been set.

“The issue of having strong supply but weak demand in the current economic operation is indeed a prominent problem,” Wang Changlin, vice head of the National Development and Reform Commission (NDRC), said at a press conference.

China’s economy grew 5% last year, matching the government’s target, as a surge in exports offset weak domestic consumption—a balancing act analysts say will be difficult to replicate. Industrial output rose 5.9% in 2025, outpacing retail sales growth of 3.7%, highlighting the supply-demand gap.

On Tuesday, China’s finance ministry announced it would extend interest subsidies for consumers, consumer-service enterprises, and businesses needing equipment upgrades through the end of 2026 to help revive softening domestic demand.