China Unveils Service Consumption Boost to Fuel Economic Growth

China has launched a comprehensive policy package to revitalize service consumption, targeting both established industries and emerging markets to sustain economic momentum in 2026. The initiative, announced by Vice Minister of Commerce Yan Dong, focuses on three core strategies: revitalizing key sectors, unlocking emerging fields, and strengthening systemic support mechanisms.

Targeted Sectors and Innovations

The plan prioritizes transportation, senior care tourism, automotive aftermarket services, and inbound consumption, while also promoting experiential services like live performances and themed travel experiences. New measures include safety protocols for large-scale events, specialized tourist routes, and relaxed market access to foster premium brands. A graded classification system for automobile modifications will be piloted to balance innovation with regulation.

Structural Shift in Consumption

Ministry data reveals service consumption now accounts for 46.1% of total consumer spending, up 3.5 percentage points since 2020. “This reflects evolving consumer priorities – from basic needs to quality and personalization,” explained Kong Dejun, Director-General of Service Trade and Commercial Services. The strategy builds on 2025’s 95.9% surge in tax-refund sales for international visitors, with plans to expand inbound tourism and business travel services.

Global Integration

Five cities – Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing – will be developed as international consumption hubs, offering premium services and multilingual support. The ministry also aims to streamline cross-border payment systems and expand duty-free shopping networks, capitalizing on 2025’s 82 million international border crossings.

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