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New elements inject vitality into services consumption

By Wang Zhuoqiong | China Daily | Updated: 2025-07-09 10:05
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A boy interacts with a humanoid robot guide at a camping site in Huaian, Jiangsu province, on May 31. ZHAO QIRUI/FOR CHINA DAILY

China's services consumption sector is gaining fresh momentum as emerging models — from "camping plus food" and "IP plus consumption" to "AI plus consumption" — create new growth engines and invigorate consumer demand.

Local governments are capitalizing on this momentum by rolling out targeted policies and organizing events to expand high-quality service offerings. Analysts have said that China has vast room for growth in services consumption, and coordinated efforts on both the supply and demand sides could provide a strong boost to economic recovery.

Across China, summer is bringing a boost in seasonal spending, particularly in food and tourism-related services. Regional food-themed events are flourishing. Beijing hosted an immersive camping and delicacy experience in Nanyuan Forest and Wetland Park, while Guangyuan in Sichuan province drew large crowds with a festival featuring music, local cuisine and cultural performances.

Cultural tourism is also surging. A report by Tongcheng Travel shows bookings for summer travel flights and train tickets began peaking in mid-June, with about 35 percent of domestic aviation passengers expected to be families with children. Cities like Beijing and Xi'an, Shaanxi province, are top destinations for family-oriented summer travel.

From January to May, retail sales of services rose 5.2 percent year-on-year, and the Ministry of Commerce is now doubling down with a national "services consumption season" campaign. The initiative will include over 160 events, emphasizing integrated experiences such as tourism, sports, digital, performances and more.

For example, the 2025 Jiangsu Football City League has emerged as a breakout cultural and sports IP.Nestle Ice Cream recently signed on as the official supplier for the league's Nanjing zone and a partner of the Nantong zone in Jiangsu province, deepening its connection with younger consumers through experiential marketing and on-site engagement.

"By aligning with youth-focused events like football tournaments, Nestle Ice Cream is enhancing brand resonance while offering immersive product experiences," the company said in a statement.

Xie Lanlan, associate researcher at the China Center for International Economic Exchanges, told Shanghai Securities News that services consumption is playing an increasingly central role in economic growth. In 2024, per capita services consumption expenditure rose 7.4 percent, contributing 63 percent to the growth of per capita consumption.

Local governments are expanding services infrastructure, especially in elderly care. New projects such as"15-minute elderly care service circles", senior care complexes and daycare centers are underway nationwide. Following the central bank's rollout of a 500 billion yuan ($69.7 billion) relending quota to support services consumption and elderly care, banks and institutions have ramped up financing efforts.

However, analysts point out that supply still lags in some areas. "While total investment is high, per capita availability in medical care, elderly care, catering and hospitality is relatively weak. Compared with developed countries, there's still about 50 percent more investment potential," Yi Huan, chief macroeconomist at Huatai Securities, told Shanghai Securities News.

To bridge that gap, provinces such as Shandong, Hunan and Guangdong have launched new policy frameworks aimed at boosting domestic services quality, upgrading elderly and childcare systems, and expanding multi-level service infrastructure.

At the national level, China is also looking to attract international participation in the services sector. The Ministry of Commerce is piloting services sector expansion across areas such as the internet, education, culture, telecommunications and medical care. The ministry has proposed adding items like camping, homestays and 'Internet + medical' to the encouraged list for foreign investment.

With strong demographic trends and rising disposable incomes, services consumption is positioned as a long-term growth pillar. Experts said coordinated policy support and structural reform are essential to unlocking this potential.

"In the next decade, demand for developmental, experiential and personalized services will surge," said Xie. "Building a multi-tiered, demand-driven services consumption system is crucial. National resources should focus on key sectors and demographics, while improving the consumption environment to support healthy market development."

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