Chinahasrolledoutsector-specificmeasuresaimedatboostingservicesconsumption,officialsandanalystssaid,pointingtoanongoingstructuralshiftindomesticdemand,wherespendingonservicesisincreasinglybecomingakeygrowthdriver.

Coupledwithconsumergoodstrade-inprograms,Beijingisdoublingdownonitseffortstotransitiontowardamoreconsumption-ledgrowthmodelatatimewhenexternaldemandremainsuncertain,theyadded.

TheircommentcameaftertheStateCouncil,thecountry'sCabinet,releasedaworkplaninlateJanuarytoacceleratethecultivationofnewgrowthdriversinserviceconsumption.

Targetingkeysectorssuchastransportationservices,domesticservices,onlineaudiovisualservices,sojourntourismservices,automotiveaftermarketandinboundconsumption,theplancallsformeasurestoboostgrowthbyimprovingservicesupply,advancingpilotprograms,fosteringinnovativeconsumptionscenariosandstrengtheningtalentdevelopment.

Forpotentialsectorsincludingperformanceservices,sportseventservices,andemotionandexperience-orientedservices,measureswillbetakentocultivatenewmomentumbyrefiningincentivemechanisms,enhancingsafetymanagement,fosteringhigh-qualitybrands,andbuildingsupportingplatforms,accordingtotheplan.

Italsounderscorestheneedtostrengthenpolicysupportbyimprovingstandardssystems,enhancingcreditdevelopment,andincreasingfiscalandfinancialsupporttoprovidesolidsafeguardsforcultivatingnewgrowthpointsinserviceconsumption.

"Inrecentyears,aslivingstandardshaveimproved,theconsumptionstructureofChinesehouseholdshasbeenshiftingfromagoods-dominatedmodeltoonewherebothgoodsandservicescarryequalweight,"saidKongDejun,director-generaloftheministry'sdepartmentoftradeinservices.

Between2020and2025,percapitaservice-relatedconsumptionexpendituregrewatanaverageannualrateof8.5percent.Itsshareoftotalhouseholdspendingroseby3.5percentagepointsduringthesameperiod,reaching46.1percentofhouseholdconsumptionin2025,accordingtoministrydata.

"Lookingahead,China'sserviceconsumptionsectorisenteringacriticalstrategicwindowandwillplayasignificantroleinliftingthehouseholdconsumptionrateanddrivinghigh-qualityeconomicdevelopment,"Kongadded.

Tofullyleveragethecatalyticroleoffiscalfunds,expandthesupplyofhigh-qualityconsumerservices,fosterdiversifiedconsumptionscenarios,andeffectivelyunlockconsumptionpotential,theMinistryofCommerceandtheMinistryofFinancehave,sinceSeptemberlastyear,initiatedpilotprogramstopromotenewforms,models,andsettingsofconsumption.

Thetwoministriesselected50pilotcities,identifiedalistofproposedprojectsforsupport,anddisbursedaninitialbatchof8.6billionyuan($1.25billion)infiscalfundingtothesecities.

"Thepermanentresidentpopulationofthepilotcitiesexceeds480million,andtheirtotalretailsalesofconsumergoodsaccountformorethanhalfofthenationalfigure,"saidVice-MinisterofCommerceYanDong.

"Thisvastmarketscaleprovidesampleroomtoexplorepathwaysforcultivatingnewgrowthdrivers,acceleratingthedevelopmentofnewbusinessmodelsandformatsthataremarket-validatedandendogenouslydriven,"Yanadded.

DatafromtheNationalBureauofStatisticsshowedthatChina'sserviceretailsalesgrewby5.5percentyear-on-yearin2025,outpacingthegrowthofgoodsretailsalesby1.7percentagepoints.

Sub-sectorssuchasculture,sports,tourismandtransportationallmaintaineddouble-digitgrowthinretailsales.

Servicesconsumption,analystsnote,offersapathwaytothateconomicrebalancingthatalsoalignswithbroadersocialpriorities:aging-in-placeservicesforagrayingpopulation,culturalenrichmentforanincreasinglyeducatedcitizenry,andsustainabletourismthatdistributeseconomicactivitybeyondcoastalmanufacturinghubs.

InternationalexperienceshowsthatonceGDPpercapitaexceeds$10,000,thepaceofconsumptionupgradingtendstoacceleratesignificantly,saidLuoZhiheng,chiefeconomistandheadoftheresearchinstituteatYuekaiSecurities.

Bycomparison,theshareofservicesconsumptionintotalhouseholdspendinginChinaisstillbelowthe60-70percentrangetypicalofdevelopedeconomies,indicatingconsiderableroomforfurtherexpansionoftheservicesconsumptionsectorasawhole,Luoadded.

"Rapidurbanizationisfuelingdemandforresidentialservices,childcare,andelderlycare.Youngconsumers,seekingnovelexperiences,aredrivingrobustgrowthinculturaltourismandleisureactivities,"Luosaid.

China'ssnow-dustedslopes,inparticular,haveemergedasapowerfulengineofserviceconsumption,withskiresortsnationwiderecording118millionvisitsduringthepeakwinterseasonfromNovember2025throughJanuary2026,accordingtotheGeneralAdministrationofSportofChina.

Thethree-monthperiodsawtotalspendingatandaroundskifacilitiesreach69.15billionyuan,generating890milliontransactions—a6percentyear-on-yearincrease,saidAiYu,aseniorofficialfromtheadministration.

Morestrikingwasthesurgeininboundtourism:about1.26millionoverseasvisitorshittheslopes,an89.2percentjumpoverthepreviousyear,Aisaid.

China'sserviceconsumptionsectorisalsoopeningwidertotheoutsideworld.Thecountryhasoptimizedvisa-freeandtaxrefundpoliciestofacilitateinboundtourism.

Chinahasextendeditsunilateralvisa-freepolicytoover40countries,includingmanyinEurope,NorthAmerica,andOceania,untilDec31,2026,allowingstaysofupto30daysforbusiness,tourism,familyvisitsandexchange.

Inadditiontovisa-exemptionarrangements,Chinahasexpandedthe240-hourvisa-freetransitpolicyto65portsacross24provincial-levelregions.

ThereisahugerushamonginternationaltouriststovisitChinaduringSpringFestival,withflightbookingssoaring400percentinthetwoweeksbeforethefestivalcomparedtothesameperiodlastyear,datafromonlinetravelplatformTrip.comGroupshowed.

LeadingthetrendaretravelersfromArgentina,fromwherebookingsskyrocketed900percentyear-on-year,whilebookingsfromEuropeannations,includingtheNetherlands,SpainandtheUnitedKingdom,allsawincreasesexceeding200percent.

Vice-MinisterofCommerceShengQiupingrevealedthatthecountry's13,000tax-refundshopsforoverseasvisitorsarealreadystockedwithpremiumproducts,andthattherefundprogramoffersforeignvisitorsshoppinginChinaadiscountofabout10percentontheirpurchases.

Lastyear,thenumberofoverseasvisitorsclaimingtaxrefundssurgedby305percentyear-on-year,datafromtheStateTaxationAdministrationshowed.

"Chinahassomanyshopsandtherearesomanystylesavailable.ItisreallyinterestingtogoaroundandcheckwhatChinesebrandsprovide,"saidEkaterinaErmakovafromRussia,whoisvisitingBeijing,adding,"IreallylovethatChinesepeopleareveryconsciousabouttheirculture."

ChengShi,chiefeconomistatICBCInternational,saidthattheinfluxofinternationalconsumers,whohavehigherexpectationsfromproductquality,branddiversity,servicestandardsandconvenience,willpushthedomesticcommercialsystemtoaccelerateitsalignmentwithinternationalnorms.

Theimprovementsintheinternationalizedconsumptionenvironmentarenotexclusivetoforeignvisitors;theyalsoenhancetheconsumptionexperienceforlocalresidents,therebyunlockinghigherdomesticconsumptionpotential,Chengadded.