economy
January 30, 2026
Scenic trains, cruises and concerts: China’s new plan to get consumers spending again
China rolled out a new work plan to boost services consumption as stimulus measures to boost households spending on goods have so far done little to lift demand.
TL;DR
- China's cabinet has released a plan to boost services consumption, including tourism, elder care, and sports events.
- This initiative aims to increase the share of consumption in the economy and cultivate new growth drivers in services.
- The push for services consumption comes as consumers are cautious about big-ticket purchases due to a property slump, job market concerns, and income uncertainty.
- Household preferences are shifting towards experiences and social activities over goods, driven by a desire for emotional satisfaction and self-expression.
- The plan includes infrastructure upgrades for tourism, expanded visa-free entry, and support for live performances and sports events.
- Authorities are encouraging banks to extend credit and facilitate fundraising for service-consumption firms.
- Economists express skepticism about the plan's effectiveness without deeper reforms to raise household income and strengthen social welfare.
- Boosting household disposable income and investing in social services are seen as crucial for sustainable consumption growth.
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