China’s wholesale and retail sector has shown robust growth in the first nine months of 2026, with a notable surge in consumer spending on durable goods. According to data released by the Ministry of Commerce, the wholesale and retail industry’s added value reached 11.1 trillion yuan, marking a 4.4% year-on-year increase. This represents an acceleration from the first half of the year, with a 0.7 percentage point increase in growth rate, contributing 10.4% to the national GDP.
Key Highlights in Consumer Spending
A significant driver of this growth has been the success of trade-in programs for consumer electronics and home appliances. Since the beginning of 2026, the cumulative number of home appliances exchanged through trade-in initiatives has surpassed 100.99 million units. Furthermore, the purchase of new digital and smart products has exceeded 120.6 million units.
Specific data from the National Bureau of Statistics underscores the strong performance in certain retail categories. From January to September 2026, retail sales of communication equipment in enterprises above designated size reached 812.3 billion yuan, an impressive 18.1% year-on-year growth. The month of September alone saw a remarkable 31.1% increase in this category, continuing its leading position among 16 key product types and reaching its highest level since June of the previous year.
The trend of upgrading to newer, more advanced products is evident across various segments. Retail sales of wearable smart devices and high-energy-efficiency home appliances have both maintained rapid growth, indicating a consumer preference for advanced technology and sustainable options.
Government Support for Consumer Upgrades
This surge in consumer activity is partly fueled by government initiatives aimed at stimulating consumption. In September 2026, the National Development and Reform Commission, in conjunction with the Ministry of Finance, allocated the fourth batch of special long-term treasury bonds totaling 62.5 billion yuan to local governments. These funds are specifically earmarked to support the trade-in of consumer goods.
With this latest allocation, the full annual budget of 250 billion yuan dedicated to promoting the trade-in of consumer goods has now been disbursed. This substantial financial backing is designed to encourage consumers to replace older appliances and electronics with newer, more efficient models, thereby boosting both domestic demand and the technological upgrade of household goods.
The positive performance of the wholesale and retail sector, particularly in consumer electronics and home appliances, signals a healthy consumer market in China. The ongoing trade-in programs and government support are expected to continue driving sales and encouraging technological advancements in consumer products.
