China looks for new ways to boost spending on services, from senior care to tourism

Facing subdued external demand, Beijing banks on services sector with support for childcare, visa-free travel and ‘low-altitude aviation’

Reading Time:3 minutes

China is looking to unleash new demand in emerging sectors including low-altitude aviation – an area that includes airships and parachuting – as well as cruises, yachts, and recreational vehicle camping. Photo: Handout via Xinhua

Published: 1:46pm, 4 Aug 2024Updated: 3:26pm, 4 Aug 2024

China is pinning more hopes on the services sector to lift demand and breathe new life into the economy, with a raft of new measures to boost spending in areas ranging from tourism to care for the elderly.

In a 20-point directive released on the weekend, the State Council, the country’s cabinet, said it would increase support for nursing care, consider extending visa-free policies to more countries, and encourage “low-altitude tourism” to spur spending on services, a sector that is growing faster than goods.

The measures follow the release last week of the Politburo’s midyear economic review, which underlined services as an “important solution” to expanding overall consumption, something Beijing is banking on for future growth amid subdued external demand.

The country posted a 5 per cent increase in gross domestic product in the first half of the year from 12 months earlier, but momentum took a hit in the second quarter as year-on-year growth slowed to 4.7 per cent, according to official figures.

The authorities are looking to unleash new demand in emerging sectors including low-altitude aviation – an area that includes airships and parachuting – as well as cruises, yachts, and recreational vehicle camping.