Illustration: Chen Xia/GT

Fresh economic indicators point to a continued improvement in China's consumer market. According to data released by the China Federation of Logistics & Purchasing (CFLP), the China e-commerce logistics index maintained an upward trajectory for a third consecutive month in May. Both total e-commerce logistics volume and rural e-commerce logistics volume grew by more than 20 percent year-on-year, underscoring the vitality of domestic demand, CCTV News reported on Sunday.

These figures reveal more than a short-term rebound in consumer activity, highlighting the significant growth potential embedded in China's vast domestic market. Cui Zhongfu, chief economist of the CFLP, said that China's consumer market is characterized by stable traditional consumption, rapid growth in technology-related products, and expanding demand from emerging markets.

In the short term, seasonal factors such as the May Day holidays, major e-commerce promotional campaigns, and continued improvements in logistics infrastructure help boost consumer spending. More importantly, structural forces are providing sustained support for domestic demand. The rise of smart consumption, services-oriented consumption, lower-tier market consumption, artificial intelligence (AI)-enabled applications, and the silver economy is creating new sources of growth and broadening the foundations of China's consumer market.

The recovery in consumption is not limited to retail sales. It is increasingly generating positive spillover effects across the broader economy, creating a virtuous cycle between domestic demand and economic activity. One of the clearest signs of this trend can be seen in China's imports.

In the first five months of the year, China's imports reached 8.77 trillion yuan ($1.3 trillion), up 20.5 percent year-on-year. Imports in May alone rose by 21.5 percent, the third consecutive month of growth higher than 20 percent. Rising imports reflect improving domestic demand and demonstrate the growing pull of China's expanding consumer market on global goods and services.

A closer look at individual sectors illustrates the changing composition of demand. New forms of consumption are emerging as important growth drivers. Data from the Ministry of Commerce (MOFCOM) shows that sales of smart consumption products have expanded rapidly. In April, sales of smart glasses on major platforms surged nearly sixfold year-on-year, while sales of handheld photography equipment and smart blood glucose meters also grew strongly. Products that combine technology, convenience, and health management are increasingly becoming mainstream, reflecting a broader trend of consumption upgrading.

At the same time, China's consumption structure is evolving beyond traditional goods purchases, and shifting toward a combination of goods and services. From January to April, retail sales in services-related sectors, including tourism, transportation, leasing services, culture, sports, and leisure, maintained double-digit growth, according to MOFCOM data. This suggests that Chinese consumers are placing greater emphasis on the quality of life, experiences, and personalized services, further diversifying the drivers of domestic demand.

Another notable development is the continued narrowing of the urban-rural consumption gap. During the first four months of the year, retail sales of consumer goods in rural areas grew 2.8 percent year-on-year, outpacing urban growth by one percentage point, official data showed. As infrastructure, logistics networks, and digital platforms continue to improve, county-level and rural markets are increasingly emerging as important drivers of consumption growth. Their untapped potential has provided additional room for the expansion of domestic demand.

Some foreign media outlets have been hyping the narrative of a "China Shock 2.0," negatively interpreting China's manufacturing competitiveness and export capacity. Such perspectives intentionally overlook another important reality: China's demand side still possesses considerable room for expansion, and that growth is far from peaking.

The real question is not whether China has demand potential, but where the next wave of demand growth will emerge. The answer lies in identifying new opportunities. Whether in smart devices, healthcare services, elder care, or AI-enabled applications, new forms of demand are continuously being created alongside economic transformation and technological progress.

The advantages of China's vast domestic market are generating new dividends through structural upgrading. Consumption is still undergoing a deep transformation, and significant potential remains to be unlocked. As businesses continue to adapt to changing consumer preferences, China's domestic market is expected to remain a key source of economic resilience.

For the global economy, this trend also carries significance. A steadily expanding Chinese market not only strengthens the its own growth but also creates opportunities for international trade. As domestic demand continues to recover and diversify, China will remain an important contributor to global economic stability and growth.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn