China Unveils Measures to Upgrade Producer and Consumer Service Sectors

China has rolled out a package of policy measures aimed at expanding and upgrading its service sector, according to state media reporting on National Development and Reform Commission directives. The initiative spans producer services—such as research and development, logistics, and software—and consumer services, led by nationwide eldercare consumption subsidies. To support implementation, authorities pledged targeted land-use policies and structural monetary tools. Official data shows services accounted for 66.1% of national economic growth in the first half of the year, a 5.9 percentage point increase from the previous year.

Services generate nearly two-thirds of China's economic expansion. By coordinating industrial support for high-end manufacturing with consumer subsidies for social services such as eldercare, the National Development and Reform Commission is addressing both supply-side modernization and domestic consumption bottlenecks. Target-specific land reallocation and preferential lending mechanisms are intended to ease factor constraints that have historically limited service sector productivity.

China has introduced a comprehensive set of policy initiatives designed to expand capacity and raise quality standards across its service economy, according to state media reports citing the National Development and Reform Commission (NDRC). The strategic framework divides priorities between producer services and consumer-facing personal services. On the producer side, authorities plan to integrate specialized services—including research and design, modern logistics, and software and information technology—more deeply into industrial and supply chains. On the consumer side, the government intends to launch nationwide eldercare service consumption subsidies while steadily expanding the availability of high-quality household and personal services. To underpin these operational goals, the NDRC emphasized targeted factor support in both land use and financial mechanisms. Local authorities have been directed to advance the redevelopment of inefficient industrial land and promote the adaptive reuse of vacant commercial and residential buildings. These physical resources will be guided toward clustering producer services inside industrial parks. Concurrently, regional urban planning is instructed to prioritize land requirements for social services, notably elderly care and childcare facilities. On the financing front, authorities signaled an expanded role for structural monetary policy instruments. These targeted facilities will focus lending support on technology services and transport logistics, as well as the culture, tourism, and sports industries. The policy push follows official economic indicators underscoring the growing systemic weight of tertiary industry. In the first half of the year, the service sector contributed 66.1% to China's overall economic growth, representing a 5.9 percentage point increase compared to the same period in the prior year, state media reported.