China recently unveiled new measures to support a service consumption boost. Consequently, officials aim to drive economic growth and improve people’s well-being. Moreover, experts note that the service consumption boost will optimize supply, stimulate demand, and advance high-quality development.
Furthermore, nine government agencies released the initiative, outlining 19 tasks across five key areas. At a press briefing, Vice Minister of Commerce Sheng Qiuping emphasized that the plan to expand service consumption focuses on cultivating service platforms, increasing high-quality supply, and strengthening financial support.
Sheng also noted that the service consumption boost links improved livelihoods with increased spending. For example, the measures promote sports events, expand long-term care insurance, and support community-based childcare services. Together, these steps aim to meet citizens’ daily needs while stimulating new consumption.
In addition, the measures encourage pilot cities to test innovative business models and scenarios to balance supply and demand. Authorities plan to expand cultural, tourism, and sports offerings, while also improving services in entertainment, elderly care, and childcare.
On the demand side, the plan provides stronger credit support, extends service hours, and launches targeted consumption campaigns. As a result, these actions aim to increase both the willingness and capacity of consumers to spend, further reinforcing the service consumption boost.
Meanwhile, the government will relax restrictions on sectors such as mid-to-high-end healthcare and leisure. By easing rules, authorities hope to attract private and foreign investment, boost market vitality, and improve service efficiency.
In addition, experts emphasize that reforms in cultural institutions could have significant effects. Zou Yunhan, a researcher with the State Information Center, noted that allowing museums to innovate exhibition formats and retain revenue for staff incentives could turn them into comprehensive cultural and leisure venues, further advancing the expansion of service consumption.
Moreover, the People’s Bank of China supports the service consumption boost through financial tools. In May, it launched a 500-billion-yuan relending facility for elderly care and service sectors. Consequently, banks will increase lending for catering, culture, education, and tourism.
By the end of July 2025, major service sectors had outstanding loans totaling 2.79 trillion yuan, up 5.3 percent year on year. Additionally, local governments will issue special-purpose bonds and provide interest subsidies to reduce financing costs and lower consumer expenses, further promoting the service consumption boost.
Overall, observers say the measures will gradually make service consumption a key driver of domestic demand. Therefore, experts expect the service consumption boost to enhance well-being while simultaneously supporting China’s broader high-quality development strategy.
