China Announces Measures to Boost Service Consumption and Stimulate Growth

China on Tuesday announced a series of measures aimed at boosting service consumption and supporting its slowing economy. The initiatives include further opening up sectors such as the internet and culture, as well as encouraging the organization of international sporting events to drive demand.

The measures, jointly issued by nine government bodies including the Ministry of Commerce, Ministry of Finance, and the central bank, also aim to attract more foreign and private investment in areas such as mid- to high-end healthcare.

Authorities plan to launch more international sporting events, assist local governments in organizing community sports activities, and promote the development of high-end boutique events, professional leagues, and sports brands.

Factory output and retail sales in China recorded their slowest growth since August of last year, putting pressure on Beijing to provide additional stimulus to address the economic slowdown in the world’s second-largest economy.

The government will promote the opening of sectors such as the internet, culture, telecommunications, healthcare, and education, while improving market access in areas like mid- and high-level healthcare and leisure services.

China also aims to attract more international tourists by expanding visa-free access and streamlining visa policies.

According to officials, the government will leverage central government funding and local special bonds to support projects in culture, tourism, elderly care, childcare, and sports facilities.

Monetary policy tools will be deployed to encourage financial institutions to increase credit supply for service consumption and expand lending to businesses in the sector.

In August, amid the economic slowdown, China introduced interest subsidies for businesses operating in eight consumer service areas—including catering and tourism—to promote service consumption.

Chinese economists and policy advisers have called for greater support to the rapidly expanding service sector to boost consumption. This sector has been prioritized by top leaders this year as a way to spur growth amid ongoing tariff disputes with the United States.

Additionally, China has allocated 231 billion yuan ($32.47 billion) in special treasury bonds for consumer goods trade programs focused on home appliances, smartphones, and tablets.