Policies boost consumption of services

For the over 230,000 fans who flocked to Shanghai in mid-March for the 2026 Formula One Chinese Grand Prix — 80 percent of whom traveled from other provinces or overseas — their event ticket delivered a double thrill. It was not only a pass to the high-speed spectacle at the Shanghai International Circuit, but also a key to a wider array of consumption experiences in the metropolis.

By presenting their ticket stub, fans could unlock dining discounts, hotel upgrades and other perks at nearly 500 local merchants, transforming the sporting event into a vibrant economic catalyst.

Official data showed that during the three days of the race, nearby hotel bookings surged over 125 percent, and surrounding commercial complexes generated 132 million yuan ($19.2 million) in revenue.

Describing the ticket stub as a "passport" to various urban consumption opportunities, Lu Shan, vice-mayor of Shanghai, pointed out that today's consumers are no longer just buying goods — they are increasingly seeking experiences, cultural values and meaningful interactions.

"The synergy of sports, culture, tourism, commerce and exhibition is now unlocking imagination for Shanghai's consumption opportunities," Lu said.

The "ticket-stub economy" exemplifies an emerging trend nationwide: Services consumption is no longer about isolated transactions, but about integrated, experiential ecosystems. This shift is at the heart of China's latest economic strategy.

In January, the State Council, China's Cabinet, issued a work plan to guide efforts in optimizing and expanding the supply of services, cultivating new growth drivers in services consumption, and promoting its quality upgrade and public benefit.

The document has identified high-potential fields such as sporting events, performances and experiential services, alongside key areas such as tourism and inbound consumption, outlining targeted policy measures to expand the high-quality supply of services and enhance public satisfaction.

This policy drive is firmly anchored in the strategic vision of the Chinese leadership, as President Xi Jinping has consistently highlighted the pivotal role of the services sector.

At the Central Economic Work Conference in December, Xi called for action plans to expand and upgrade services, stressing the need to adapt to shifts in consumption patterns, expand the supply of high-quality goods and services, and unlock the potential of services consumption.

This emphasis is underpinned by solid economic performance. China's value-added service output went up 5.4 percent year-on-year to 80.89 trillion yuan in 2025, with the sector contributing 61.4 percent to the country's overall economic growth, data from the National Bureau of Statistics showed.

Xi's vision of promoting the high-quality, efficient development of the services sector and deepening integration between modern services and other sectors has been formally incorporated into the 15th Five-Year Plan (2026-30) for socioeconomic development and the annual Government Work Report. The two key national policy documents both explicitly advocate expanding and improving the services sector, translating the vision into concrete, actionable national goals.

The policy momentum continued throughout March. Following the announcement that China would hold a national services industry conference after the two sessions, the annual gatherings held in March of China's top legislative and political advisory bodies, the State Council put forward clear requirements at two key meetings to steer policy direction, and the National Development and Reform Commission pledged to accelerate the formulation of an action plan.

Observers said the series of closely coordinated government steps has laid substantial groundwork for the upcoming conference. The gathering will be the first of its kind at the national level dedicated to planning and advancing the high-quality development of the services sector, reflecting the industry's elevated strategic position, they added.

A key focus of this strategic elevation is to nurture growth across the sector's dual pillars: consumer services and producer services.

Consumer services — such as tourism, dining and entertainment, exemplified by the offerings unlocked through the F1 ticket — deliver experiences directly to individuals. Producer services, on the other hand, are intermediate inputs that drive innovation and efficiency across production activities, spanning areas such as research and development, logistics, advertising, and information and communication.

"In recent years, China's services sector has grown rapidly," said Shen Danyang, director of the State Council Research Office. "However, its capacity, quality and efficiency remain at a level that does not yet match international standards or fully align with domestic development trends, indicating that significant potential remains untapped."

Shen outlined the path forward, stressing that efforts should focus on advancing producer services toward greater specialization and higher value-added activities across sectors, and promoting the high-quality, diversified and convenient development of consumer services.

During the 15th Five-Year Plan period, the scale of China's services industry is expected to exceed 100 trillion yuan, according to Zheng Shanjie, director of the National Development and Reform Commission.

Recognizing the immense potential of the services sector, China is reinforcing a dual-track strategy — boosting domestic demand while pursuing high-standard opening-up — to advance the high-quality development of the services sector.

Xi has placed high importance on the opening-up of China's services sector. Since the launch of the China International Fair for Trade in Services — the world's largest trade fair in services — in 2019, he has either sent congratulatory letters or delivered video speeches to the annual event for seven consecutive years.

In his 2025 congratulatory letter to the fair, Xi reaffirmed the drive to actively align with international high-standard economic and trade rules, and to further open China's services market.

Concrete measures are accelerating this cycle. China is expanding its nationwide testing ground for institutional opening-up in the services sector through comprehensive pilot programs, which now cover key areas such as telecommunications, healthcare and finance. In addition, policies are being constantly optimized to facilitate inbound consumption by expanding tax-refund access for international visitors and enhancing the overall appeal and convenience of shopping in China.

This clear trajectory of opening-up in China's services sector is resonating strongly with the global business community. Leading international companies said they acknowledge China's vast potential and are aligning their strategies accordingly.

Saravoot Yoovidhya, CEO of TCP Group, the Thai conglomerate behind the energy drink brand Red Bull, said that China's economy is entering a new stage of high-quality development, where health consumption has evolved from an optional choice to a rigid demand, creating significant development opportunities.

He called for policies that encourage consumer goods companies to expand consumption opportunities and tap into consumer demand. This could be achieved by integrating health into diverse scenarios such as sports, cultural tourism and the workplace, and through leveraging artificial intelligence and big data technologies to capture trends and enhance consumer experiences, he added.

He expressed his expectation that China will further deepen institutional opening-up to facilitate efficient connections between global quality resources and China's mega-market, expanding consumption growth space through open collaboration.