China to boost service sector for economic growth

China will prioritise the development of consumer services to drive economic growth and meet rising consumer demand, according to a government guideline released Saturday.

The State Council outlined 20 key areas to focus on, including hospitality, domestic services, elderly care, childcare, entertainment, tourism, sports, education, and training.

The plan also emphasises the cultivation of emerging sectors such as digital, green, and health services.

To stimulate consumption, the government pledged to relax market entry restrictions, strengthen regulations, and provide increased policy support for the service industry.

China will also accelerate the opening up of sectors like telecommunications, education, elderly care, and medical care, while expanding visa-free entry for more countries.

A top-level meeting held on Tuesday identified consumption as a key driver of economic growth in the second half of 2024.

Data released this week showed that retail sales of services in China grew by 7.5 per cent year-on-year in the first six months of 2024, outpacing goods sales by 4.3 percentage points.

Attribution: Xinhua