China's offline consumption shows signs of recovery in July, with both goods and services experiencing growth, according to the latest indicators from the National Information Center of the National Development and Reform Commission (NDRC).
In July, offline spending rose by 2.2 percent year on year, an acceleration of 0.8 percentage points compared to June. Notably, offline payments for household appliances and audio-visual equipment increased by 8.5 percent, also reflecting an upward trend from the previous month. This growth was attributed to the disbursement of the third batch of consumer goods trade-in funds and a surge in demand for cooling appliances, such as air conditioners, due to hot weather. Consumers are increasingly favoring quality and intelligent products, with smart home appliances and digital electronics seeing strong sales.
The operational vitality of small and medium-sized merchants has shown steady improvement in July, with the physical business vitality index rising by 3.1 percent compared to the previous month. Additionally, both the physical merchant operations health index and the offline consumer vitality index also recorded month-on-month gains.
"Large commercial districts and leading platforms are not only thriving, but street-side shops and community stores are also experiencing a boost. This widespread improvement reflects a dynamic where both large and small retailers are flourishing, creating a strong foundation for expanding domestic demand," said Xing Yuguan, an associate researcher with the Big Data Development Department under the National Information Center.
China's offline consumption shows signs of recovery in July
Japan's latest Defense White Paper hypes up the so-called "China threat" as an excuse to pursue its largest military expansion since World War II and break away from its long-standing exclusively defense-oriented policy, a Chinese analyst said on Thursday.
This year's white paper was released on Tuesday. The document continues to use the same security narrative outlined in Japan's 2022 National Security Strategy, which identified China as its biggest strategic challenge.
In an interview with China Global Television Network, Xu Yongzhi, an associate research fellow at China Institutes of Contemporary International Relations, noted that the document lays the groundwork for revising Japan's three key security documents later this year and accelerating its military buildup.
"With this positioning, Japan is like nothing but a thief crying 'stop thief'. In 2026, it plans to further revise its three key security documents. As we know, it's almost certain that Japan will further increase its defense spending and strengthen its military capabilities in new areas," Xu said.
The expert points out that a key change in this year's white paper is that Japan has provided more details on the deployment and development of offensive weapons, while dedicating a new section to the military application of AI and unmanned systems.
"Japan aims to send three signals to the outside world. First, its offensive weapons will achieve operational capability in a relatively concentrated period over the next two or three years. Second, the scale of these capabilities is considerable. Third, Japan is demonstrating that it has the ability to use such weapons," he said.
Xu added that Japan's latest moves are closely tied to its alliance with the United States.
"A key feature of the U.S. national security strategy and national defense strategy is that the United States expects its allies to take on greater, or even primary responsibility for intervening in regional affairs. Japan's actions are actually in line with this strategy," he said.
Japan uses 'China threat' narrative to justify its military expansion: analyst
