ECONOMY

China Doubles Down on Policy Drive to Boost Service Spending

Published: Sep. 18, 2025 5:15 a.m. GMT+8

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Service retail sales rose 5.1% in the first eight months of the year, outstripping growth in physical goods by 0.3 percentage points

China has launched a broad new initiative to boost spending on services, unveiling a raft of measures aimed at stimulating domestic demand and encouraging spending by foreign visitors.

The plan, detailed in a 19-point policy document released Tuesday by nine government departments including the Ministry of Commerce, seeks to expand and upgrade services in areas such as culture, sports, tourism, and healthcare. At a Wednesday press conference, the ministry also announced that it would select around 50 cities to pilot new consumption formats and another 15 to focus on expanding inbound consumption.

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China launched a 19-point plan to boost service sector consumption, targeting areas like healthcare, tourism, and digital entertainment, with 50 cities piloting new formats.
Financial support includes a 500 billion yuan ($70B) relending facility for services and elder care, and an 800 billion yuan fund backing nearly 100 hospitality projects in early 2025.
Efforts to increase inbound tourism include expanded visa-free access; foreign arrivals rose 30% to 19 million in H1 2024, with tax-refund shop usage up 248%.

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