BEIJING, CHINA – On November 6, 2025, women in Qing Dynasty-style costumes were seen taking photos inside the Forbidden City in Beijing. As consumer spending on expensive goods remains cautious, the Chinese government is turning to services and experiences to stimulate consumption.
On November 6, China’s cabinet announced a work plan aimed at boosting services consumption, which includes enhancing tourism, elder care services, and sports events. This initiative seeks to improve service supply and develop new growth drivers in the economy over the next five years.
The push comes as officials attempt to bolster domestic demand amid challenges such as a stagnant property market, high unemployment, and income uncertainty affecting consumer behavior. Concerns are also growing that the previous export boom may not be sustainable.
Retail sales showed a modest growth of 3.7% in 2025, trailing behind industrial output growth of 5.9% and overall economic growth of 5%. A decline in consumer inflation and producer prices, contributing to a drop in corporate profits, further complicates the economic landscape.
The State Council’s plan includes upgrading infrastructure for tourism and yachting, expanding visa-free entry for more countries, and enhancing live performance and sports events. Authorities are also encouraging banks to provide more credit to service-consumption firms, aiming to align the development of the service sector with national policies.
Economists indicate that a shift is occurring in consumer spending habits, with greater emphasis on services rather than material goods. A survey by the People’s Bank of China shows a rising interest in spending on social and entertainment activities, reaching an eight-year high.
Experts caution that for the government’s strategy to succeed, deeper reforms are necessary to raise household income and improve social welfare. Increased investment in social services could encourage households to spend more, rather than save, addressing higher saving rates prompted by economic uncertainties.
Source: Reported based on publicly available information from www.cnbc.com.
