China primes services sector to power next growth cycle

China is sharpening its focus on the services sector as a central pillar of high-quality development. The State Council unveiled a sweeping policy framework on Tuesday to expand capacity and elevate quality across the industry, reinforcing its role in driving growth, supporting employment, and facilitating industrial upgrading.

It targets the services sector surpassing 100 trillion yuan ($14.66 trillion) in total output by 2030, with an improved structure, higher efficiency, and stronger global competitiveness. The plan also envisions the rise of globally recognized "China Service" brands, signaling a transition from scale-driven expansion to value-oriented development.

Measures are spread across the entire value chain of producer services. This includes enhancing R&D and industrial design capabilities, upgrading IP services, accelerating commercialization of technological outcomes, and improving testing, certification and standards alignment with international benchmarks. Meanwhile, modern logistics is set for a comprehensive upgrade through multimodal transport systems, integrated warehousing, and the emergence of globally competitive logistics service providers.

Digital transformation is another cornerstone. The guideline calls for deeper integration of next-gen technologies, including AI, industrial internet platforms, and data infrastructure. Initiatives such as "AI+" applications, expansion of 5G and exploration of 6G, and the development of high-quality industry datasets are expected to lower barriers to digital adoption and unlock productivity gains across sectors.

On the consumer side, the policy emphasizes raising the quality and accessibility of services. Healthcare, elderly care, childcare, retail, and cultural tourism are all highlighted as key areas for improvement. The focus is not merely on increasing supply, but on delivering more diverse, convenient, and higher-quality services that align with evolving consumer expectations.

Crucially, the document underscores the importance of opening-up and institutional reform. Expanded access in sectors such as value-added telecommunications and healthcare, alongside improvements in cross-border service trade governance, signals China's commitment to deeper global integration.

"The strategy aims at a dual-track upgrade: producer services become more specialized and high-end, while consumer services turn more convenient and quality-driven," notes Zhao Zhongxiu, president of the University of International Business and Economics, in an interview with CGTN's Aaron Liu.

For international investors, the implications are significant. From high-end logistics and R&D services to digital trade and green services, China's services sector is rapidly evolving into one of the most dynamic and promising frontiers of opportunity.

(Cover via VCG)