To boost domestic consumption, the government took a series of measures to increase income of urban and rural residents in 2005, in addition to the implementation of policies aiming at regulating the market and raising consumer confidence.

Total retail sales of consumer goods reached 6,717.7 billion yuan, up 12.9 percent over the previous year, or a real growth of 12.0 percent allowing for price fluctuations. In terms of different areas, retail sales of consumer goods in cities reached 4,509.5 billion yuan, up 13.6 percent; and that at and below county level was 2,208.2 billion yuan, up 11.5 percent. In terms of different sectors, sales of the wholesale and retail industries reached 5,658.9 billion yuan, up 12.6 percent; sales of the catering industry was 888.7 billion yuan, up 17.7 percent; and sales of other industries was 170.1 billion yuan, up 0.4 percent.

Total Retail Sales of Consumer Goods, 2005         Unit: 100m yuan

Of total retail sales by wholesale and retail enterprises above designated size, sales of motor vehicles were up 16.6 percent; petroleum and related products, up 34.4 percent; cultural and office goods, up 11.4 percent; telecommunication equipment, up 19.9 percent; electric and electronic appliances for household use and audio-video equipment, up 14.8 percent; building and decoration materials, up 22.1 percent; daily necessities, up 11.9 percent; furniture, up 13.3 percent; food, beverages, tobacco and liquor, up 13.6 percent; clothing, up 19.6 percent; cosmetics, up 19.1 percent; and gold, silver and jewelry, up 13.9 percent.