(Yicai) May 23 -- Shanghai, China's most economically productive city, has introduced a special action plan aimed at boosting consumption through initiatives involving childcare, elderly care, and sports events.

The plan focuses on raising residents’ incomes, enhancing service quality, promoting new forms of consumption, and encouraging the purchase of high-value goods. The goal is to unlock greater consumer potential and stimulate economic growth, Yicai learned.

As China's leading economic powerhouse, Shanghai serves as an ideal testing ground for policy-driven spending. Last year, the eastern city’s gross domestic product exceeded CNY5 trillion (USD686.2 billion), making it the first Chinese city to reach this milestone.

To improve income and welfare, Shanghai will prioritize employment, enhance the quality and efficiency of vocational training, and implement a range of measures to promote reasonable income growth, per the plan. The city also intends to strengthen support for childbirth and childcare, expand educational assistance, optimize the supply of elderly care services, and improve the social security system.

Services and New Trends 

Services and emerging consumption trends are driving consumer spending. Zhang Bochao, an associate researcher at the Shanghai Academy of Social Sciences’ Institute of Economics, noted that while Shanghai's per capita GDP reached CNY217,000 (USD30,181) last year -- surpassing USD30,000 -- the share of service consumption remained under 50 percent, indicating substantial room for growth. Compared to other cities, online and service-oriented consumption are key strengths of Shanghai’s market.

The roadmap aims to establish Shanghai as a cultural consumption hub and a world-class tourism destination. It highlights the vigorous development of the sports economy and the integration of culture, tourism, commerce, sports, and exhibitions. Additionally, it promotes health-related spending, improved lifestyle services, and a more diversified, upgraded service supply.

Regarding big-ticket items, the city will encourage automobile purchases by implementing national and local trade-in programs for old vehicles. Shanghai also aligns with national policies offering subsidies for replacing household appliances and has introduced new subsidies for digital products such as smartphones, tablets, and smartwatches. It also supports the purchase of eco-friendly home appliances and home improvement products.

Zhang Yina, director of the Consumer Market Big Data Laboratory in Shanghai, said the action plan translates the concepts of “ability to consume, willingness to consume, and confidence to consume” into tangible measures through policy design. The plan is comprehensive and highly actionable, she added.

Zeng Gang, director of East China Normal University’s Institute of Urban Development, stated that the action plan reflects Shanghai’s role as an international consumption center and responds effectively to evolving consumer trends.

According to public data, Shanghai’s total retail sales of consumer goods reached CNY1.79 trillion last year. The city also led the nation with a per capita disposable income of CNY88,366 (USD12,294) and a per capita consumption expenditure of CNY52,722.

Editor: Emmi Laine