China’s strategic shift toward domestic consumption growth
2026-05-25 15:55 China Daily
For small and medium-sized enterprises, this digital integration ensures stable demand without the need for extensive marketing or distribution networks. In effect, platform-based ecosystems serve as decentralized coordination mechanisms, aligning millions of producers with evolving consumer preferences. This reflects the broader logic of China's planning system, where strategic objectives are implemented through market-oriented instruments.
While domestic circulation is the priority, external circulation remains essential. China continues to rely on global markets both as a source of demand and as a channel for industrial upgrading.
In this context, Temu represents a new model of export integration. Launched in 2022, the platform has rapidly expanded to more than 90 markets worldwide, connecting Chinese manufacturers directly with international consumers. This model bypasses traditional intermediaries and reduces the cost structure of cross-border trade.
The implications are significant. It allows Chinese manufacturers to connect directly with international consumers, improving efficiency and enhancing global competitiveness. And it also contributes to the internationalization of Chinese digital ecosystems, extending their influence beyond national borders.
From a policy perspective, such platforms complement the objectives of the 15th Five-Year Plan, which seeks to strengthen supply chains, expand market access and navigate an increasingly complex global environment.
The growth of platform-based models highlights an important feature of China's economic governance: the integration of State objectives with market mechanisms. Five-year plans no longer prescribe detailed output targets; instead, they provide strategic direction, guiding the allocation of resources across sectors and entities.




