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State Council of China has outlined plans to expand the country’s services sector to 100 trillion yuan (USD 14.67 trillion) by 2030, focusing on demand-led growth, technology integration, and regulatory reforms. The policy emphasises strengthening business and consumer services while increasing financial support mechanisms, including wider adoption of services-sector REITs. With the sector already reaching 80.89 trillion yuan in the previous year, the move signals a strategic shift towards consumption-driven growth and reduced reliance on infrastructure-led expansion.
State Council of China has announced a policy roadmap to expand the country’s services sector to 100 trillion yuan by 2030, as part of efforts to strengthen economic growth, employment generation, and domestic consumption. The policy document was released earlier this week, outlining a multi-pronged strategy centred on reforms, innovation, and market-oriented expansion. Advertisement
The services sector, which recorded a year-on-year growth of 5.4% to reach 80.89 trillion yuan in the previous year, is being positioned as a key driver of China’s economic transition. Authorities stated that the expansion would be supported through demand-led growth, technological advancements, and improved alignment between government support and market mechanisms.
The policy places emphasis on enhancing business-oriented services, including research and development, logistics, software, supply-chain finance, and green services. In parallel, consumer-facing sectors such as retail, healthcare, elderly care, childcare, tourism, and cultural services are expected to undergo structural upgrades to improve quality and accessibility.
Financial and institutional support forms a central component of the strategy. The government has proposed measures such as loan interest subsidies, relending tools, and the deployment of state-backed investment funds. Notably, the plan also calls for wider adoption of real estate investment trusts (REITs) linked to the services sector, indicating a growing role for institutional capital in supporting asset development and monetisation.
The move reflects a broader policy shift towards reducing reliance on traditional infrastructure and industrial investment, and instead strengthening consumption-led growth. While services spending has grown steadily, it remains below levels seen in developed economies, with per capita services consumption accounting for 46.1% of total consumption, compared to approximately 70% in the United States.
The policy also aligns with recent statements from Xi Jinping, who has called for a demand-driven approach combined with reform and technological advancement to strengthen the services economy.
By targeting a significant expansion in the sector’s size and global competitiveness, China aims to build a more balanced economic structure, with services playing a larger role in sustaining long-term growth.
Source - Reuters
5th Jun, 2025
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