China's move to cultivate new quality productive forces will help boost domestic demand, encouraging a shift from mass consumption to "personalised, high-quality" consumption, analysts say.
One of the major strategic tasks highlighted in the country's 15th Five-Year Plan (2026-30) is pursuing high-quality development. New quality productive forces — which include "AI Plus", smart manufacturing, data-driven industries, and green technology — are integral to high-quality development, according to the plan.
Anna Rosario Malindog-Uy, vice-president of the Asian Century Philippines Strategic Studies Institute, a think tank in Manila, said advanced technologies such as smart manufacturing and AI can reduce the cost of customisation, respond quickly to niche demand and enhance product quality and personalisation.
This can push consumers to choose more selective, higher-quality products and services, Malindog-Uy said.
"China's consumer future is not about buying more; it's about buying better, smarter and more meaningfully," she said.
She sees Chinese consumers increasingly seeking "selective premiumization", AI-driven personalisation, and green and healthy products and services.
Peter T.C. Chang, a research associate at the Malaysia-China Friendship Association, said new quality productive forces will accelerate the shift from mass consumption to personalised, high-quality consumption.
"China's consumer market is set to evolve into a purpose-driven ecosystem where consumption reflects not just what people buy, but who they are and how they choose to live," Chang said.
Manufacturers can now offer customised goods at scale without significant cost premiums thanks to the ability to use flexible production lines, AI-driven demand sensing and intelligent quality control, he said.
Chang cited Haier, a home-appliances company that allows consumers to co-design refrigerators online, saying smart factories fulfil each unique order with the efficiency once reserved for mass production.
"This dismantles the traditional trade-off between affordability and individuality, enabling a new consumption model that is both more personalised and higher in quality," he said.
Chinese lawmakers have approved the outline of the 15th Five-Year Plan during the two sessions of the top legislature and political advisory body held last month.
Among the tasks, the government said that to advance the Beautiful China Initiative, China must continue the critical battle against pollution, along with the drive to upgrade ecosystems, accelerate the shift to eco-friendly production practices and lifestyles, and ensure that the goal of peaking carbon emissions before 2030 is accomplished as planned.
Yang Muyi, a senior analyst for Ember, a global energy policy think tank, said AI and smart devices can shape how people consume energy.
As clean electricity becomes more distributed and uneven across time, AI can help households and communities adjust when and how they use power, Yang said.
A house with a rooftop solar installation and battery storage can store electricity when supply is abundant and potentially share or trade it within a local community, he said.
In China, where smartphones are widely used, mobile apps can enable the exchange of solar power within community energy systems, he added.
"AI may matter less in telling people what to buy, and more in helping them use energy in a smarter, more efficient way."
Meeting demand
Chang of the Malaysia-China Friendship Association said AI, biotechnology and other advanced technologies are useful in meeting the demand for healthier, greener consumption.
AI-powered precision nutrition and smart home appliances would enable personalised wellness solutions, such as customised dietary supplements, he said. Meanwhile, blockchain-enabled supply chains can help consumers to verify environmental footprints.
Chang said digital infrastructure and smart logistics can bring high-quality, customised goods to underserved areas. This, he said, will help in narrowing the urban-rural consumption gap.
"But their impact depends on supporting infrastructure and policies," he said, highlighting the need for sustained investment in rural digital infrastructure, last-kilometre logistics and digital literacy.
"When paired with inclusive policies, AI and smart manufacturing can serve as powerful tools for more balanced consumption growth," Chang said.
Smart manufacturing, combined with e-commerce, allows rural consumers to access personalised, quality goods previously unavailable locally, he said. Online retailer Pinduoduo, for example, has a Duo Duo Farms initiative that uses AI to connect small-scale farmers directly with urban consumers.
Chang said the initiative also spurs rural households to buy customised agricultural tools and home appliances through group-buying models at affordable prices. - China Daily/ANN
