China's central authorities have rolled out a new policy blueprint aimed at tapping into the vast consumer potential of county-level markets. The Ministry of Commerce, along with the National Development and Reform Commission and the Ministry of Finance, has jointly issued guidelines to further invigorate lower-tier markets and stimulate consumption activity in counties. At a State Council Information Office press conference on August 18, officials elaborated on the policy's key measures and objectives.
The rationale behind this push is clear: county regions account for roughly 90% of the nation's land area, host about half of the permanent population, and contribute nearly 40% of the economic output. Consumption in county and rural areas has been steadily increasing as a share of total retail sales, positioning these regions as the most significant growth engine for domestic demand. The new document outlines 18 specific measures concentrating on county-level markets and offline consumption. To enhance the business environment, the plan calls for upgrading existing commercial infrastructure, optimizing the layout of retail networks, improving supporting services, and revitalizing idle assets. It also emphasizes boosting the efficiency of urban-rural distribution networks and fostering coordinated online and offline retail development.
On the supply side, the policy encourages chain retailers to accelerate their expansion into smaller cities and counties. It promotes innovation among local brands and the development of new business models tailored to local conditions. Efforts will be directed at expanding the availability of high-quality, reasonably priced goods, improving services for the elderly and children, and integrating commerce with agriculture, culture, tourism, and sports. To strengthen consumption support, the guidelines highlight measures to stabilize employment and increase incomes. It also backs the establishment of corporate headquarters and platform enterprises in county areas, which is expected to generate more job opportunities and cultivate new forms of employment rooted in these communities.
Given the diverse nature of China's 1,869 county-level administrative divisions, a one-size-fits-all approach is not feasible. According to Li Jialu, Director of the Department of Commerce Development at the Ministry of Commerce, counties with dense populations and strong economies will focus on quality improvement and leading development. Those with moderate economic foundations will prioritize consolidating their base, tapping into local potential, and building distinctive characteristics. Meanwhile, counties with smaller populations and economies will concentrate on essential services and basic safeguards. The next phase will involve developing county-level commerce that reflects the unique attributes of each region.
The transformation of county markets is already visible, with more commercial complexes and branded stores appearing in county towns and township commercial centers stocking richer product assortments. Since 2021, China has built or upgraded 3,159 county-level integrated commercial service centers, 15,000 township commercial centers, and 168,000 village-level convenience stores, achieving near-comprehensive coverage of the three-tier commercial network. Over 3,600 county and township logistics distribution sites have been upgraded, with more than 100 million packages now entering and leaving rural areas daily. Additionally, nearly 4,000 facilities for agricultural product sorting, pre-cooling, and initial processing have been supported. During the 14th Five-Year Plan period, rural online retail sales surpassed 3 trillion yuan, a cumulative increase of 1 trillion yuan, with over 20 million online merchants operating in rural areas.
To further advance county-level consumption, the Ministry of Commerce is addressing key pain points identified in recent surveys. Data indicates that 49.4% of rural residents cite the limited variety of goods as the most critical issue in offline consumption. In response, efforts will be made from both the sales and production ends. This includes promoting the adoption of new energy vehicles and green, smart products in rural areas, expanding the coverage of rural charging infrastructure, and optimizing the purchasing environment. Simultaneously, companies will be encouraged to develop quality products that meet the specific needs of county consumers, and commercial enterprises will be supported in creating more private-label brands, building flexible supply chains driven by demand.
The plan also involves creating convenient living circles in county towns, expanding high-quality offerings in catering, accommodation, leisure, entertainment, and cultural tourism. More facilities and services will be added for the elderly and children, and brand chain enterprises will be guided to establish a presence in county markets. Support will be extended to small shops, time-honored brands, and workshop-style labels that embody local culture. By focusing on key priorities, addressing weaknesses, and combining the introduction of external resources with the cultivation of local businesses, the goal is to create a thriving and diverse consumption market.
Agricultural product consumption plays a pivotal role in activating county markets, connecting the dining table with agricultural production. To ensure quality agricultural products achieve good sales, the Ministry of Agriculture and Rural Affairs will continue to strengthen brand cultivation, production-to-market linkages, and the creation of consumption scenarios. This involves implementing the agricultural brand cultivation plan, telling compelling brand stories, and promoting stable connections between major e-commerce platforms, wholesale markets, and supermarket chains with primary production areas. Efforts will also focus on training local farmer livestreamers and integrating agricultural products into new business formats, encouraging nearby and integrated consumption among urban and rural residents.
In the service consumption sector, county-town tourism and rural tourism are emerging as new hotspots in lower-tier markets. The Ministry of Culture and Tourism will guide 113 counties in piloting projects to empower rural revitalization through cultural industries. The aim is to help localities tap into their unique cultural and tourism resources and enrich rural tourism offerings with "small but beautiful" formats like homestays, farming study tours, self-driving camping, and folk custom experiences.
Individual businesses represent the largest group of market entities in lower-tier markets. As of the end of July, there were over 78 million registered individual businesses in these areas, with 86% engaged in service-related industries. Institutional innovations such as the "one license, multiple locations" scheme are delivering tangible benefits. Under this policy, individual businesses can apply to register multiple physical business premises within their registration authority's jurisdiction, all recorded on a single business license. Since the implementation of the regulations on individual business registration management last year, many operators have transitioned from the traditional "one address, one license" model to "one license, multiple locations," facilitating goodwill accumulation and business expansion. Furthermore, since the issuance of guidelines on streamlining the transformation of individual businesses into enterprises last July, a total of 380,000 individual businesses have benefited from this policy and transitioned directly into corporate entities.