Make the large market a strong market

Original Title:

Turning the Large Market into a Strong Market (Zhongyuan Observation)

—Understanding Henan’s New Development Opportunities from the 14th Five-Year Plan (Part 3)

Red tiles are arranged in a charming pattern, palace lanterns adorn the long corridors, showcasing a new charm of traditional Chinese style; bustling food workshops echo with lively voices, while figures in Hanfu and intangible cultural heritage crafts create a vibrant scene.

Zhengzhou Xingheli and Zhenghe New Order ancient-style market streets are bustling with visitors, remaining popular from day to night, becoming a new internet-famous check-in spot. The lively atmosphere and cultural tourism boom reflect the vitality of Henan’s consumer market and the continuous release of domestic demand potential.

At the start of 2026, Henan’s consumer market delivered impressive results. In January and February, the total retail sales of consumer goods in the province reached 522.227 billion yuan, a year-on-year increase of 3.6%, higher than the national average by 0.8 percentage points. Looking further back, Henan’s consumption and foreign trade growth in 2025 ranked among the top nationwide, vividly demonstrating the “internal and external development” approach to building a strong domestic market.

A robust domestic market is the strategic backbone of China’s modernization and the confidence to face external uncertainties. In recent years, Henan’s consumer market achievements have been remarkable: Fat Donglai, Mixue Bingcheng, Pop Mart—these brands have turned everyday life services into warm, large-scale consumption events that touch millions of lives. In segments like tea drinks, supermarkets, catering, home furnishings, and apparel, a number of influential new brands have emerged nationwide, fueling a wave of consumer enthusiasm.

To excel in Henan’s “big market” performance is not only about precisely capturing development opportunities within the national strategy but also about enhancing economic resilience. How to build a strong domestic market? The 14th Five-Year Plan clearly outlines a roadmap, emphasizing “adhering to expanding domestic demand as a strategic foundation, combining benefits for people’s livelihoods and promoting consumption, investing in both goods and people, leading new supply with new demand, creating new demand with new supply, fostering a healthy interaction between consumption, investment, supply, and demand, achieving higher-level dynamic balance, and strengthening the endogenous power and reliability of the domestic big cycle.”

Standing at a new starting point, how can Henan seize strategic opportunities and unleash strong momentum in its large market?

Boost consumption to invigorate vitality. The first year of the plan is crucial for economic growth, and domestic demand is both Henan’s advantage and key to serving the entire country’s “big picture.” With nearly 100 million permanent residents, over ten million business entities, and a complete industrial chain, Henan is uniquely suited to expand domestic demand. Both the 14th Five-Year Plan and this year’s government work report mention boosting consumption. The word “boost” emphasizes internal vitality—truly enabling ordinary people to “be able to consume, dare to consume, and want to consume.” To improve the quality and expand the scope of goods and services, Henan will implement targeted actions to create broad-reaching, high-visibility new consumption scenarios, accelerate the cultivation of new growth points; activate offline consumption, especially in lower-tier markets; eliminate unreasonable restrictions in the consumption field; and unlock potential in cultural tourism, events, health and wellness sectors—leading new supply with new demand and creating new demand with new supply.

Invest in people to unlock potential. Historically, when people think of investment, they often picture infrastructure—steel, concrete, machines—these “investments in material goods” have indeed laid a solid foundation for development. The 14th Five-Year Plan emphasizes the close integration of investment in material goods and investment in people. People are the most dynamic factor of productivity. Henan has outlined key livelihood projects for 2026, including elderly care facilities, school meal programs, and early diagnosis and treatment for major illnesses; in 2025, the province will conduct 2.84 million vocational skills training sessions, adding 735,000 high-skilled talents. The national subsidy policies continue to promote consumption vouchers covering retail, catering, cultural tourism, and accommodation sectors. Investment should target current needs while also creating future supply. Investing in people—helping residents learn skills, improve qualities, and increase income—naturally boosts consumption willingness. When consumption is strong, enterprises expand production and increase investment, forming a virtuous cycle of “production—consumption—investment.”

Smooth circulation to strengthen the market. Deepening integration into the national unified big market, strengthening hubs, and expanding openness is not just about building more “roads,” but also about tearing down invisible “walls.” Implementing the basic requirements of “five unifications and one openness,” optimizing and upgrading the business environment, and standardizing law enforcement related to enterprises; adopting the “1210” regulatory service model to make cross-border e-commerce “instant clearance” a daily norm… “Breaking down walls,” “removing barriers,” and “improving services” will address shortcomings in factor efficiency, regional coordination, and openness levels. Leveraging regional advantages and hub functions will not only activate Henan’s own development potential but also provide solid support for national growth stability and circulation.

Opportunities of the era often come from precise positioning within national strategies. By grasping the expansion of domestic demand, connecting new consumption with new models, and continuously transforming Henan’s market scale advantage into a competitive and developmental edge, the province will activate endogenous economic momentum, enhance regional competitiveness, and promote high-quality economic development. (Yu Qing)