China is continuing its push to boost consumption in lower-tier markets, MOFCOM
said, noting third- and fourth-tier cities plus counties account for over 70% of
the population and about 60% of GDP and retail sales. In the first five months,
county- and township-level retail sales of consumer goods made up 39.3% of
national retail sales; key beneficiaries include county commercial renovations,
chain retail, elderly-care and childcare services, cultural tourism and rural
services, and the policy may help local governments convert inefficient state
assets from sunk costs into operating assets.
