By Hasan Muhammad

Editor's Note: The writer is a freelance columnist on international affairs based in Karachi, Pakistan. The article reflects the author's opinions and not necessarily the views of China Economic Net.

The traditional engine of Chinese growth is undergoing a profound recalibration. On February 6, the State Council unveiled a comprehensive policy blueprint designed to turbocharge service sector consumption, marking a significant pivot toward a domestic-led growth model in recent years.

Between 2020 and 2025, per capita spending on services in China grew at an average annual rate of 8.5 percent. By the end of last year, services accounted for 46.1 percent of total consumer expenditure. We are witnessing the arrival of a nearly balanced consumption structure, where the pursuit of experiences, wellness, and digital engagement carries as much weight as the purchase of physical goods.

The new policy package identifies a three-pronged approach: revitalizing established sectors like transportation and housekeeping, unlocking the potential of nascent fields such as senior care tourism and automotive aftermarkets, and fortifying the systemic mechanisms that allow these markets to thrive.

What makes this initiative particularly noteworthy is its focus on emotional and experiential services. In an era where basic material needs are largely met for hundreds of millions, the frontier of growth has shifted to mood enhancement and immersive experiences. This includes everything from live performances and sports events to specialized tourist routes and themed train services. The ambition is to move the economy up the value chain by catering to a population that increasingly values the quality and personalization of life over the quantity of possessions.

The early data from 2026 suggests a consumer base that is ready to engage. In the three months leading up to the end of January, the ice and snow economy saw over 118 million visits to ski resorts, generating nearly 70 billion yuan in spending. This surge in activity, particularly in a niche sector, illustrates the latent potential that the State Council aims to institutionalize through better standards, relaxed market access, and innovative financial products.

Furthermore, there is a clear mandate to boost inbound consumption and travel service exports. In 2025, the number of foreign nationals entering or exiting China rose by over 26 percent, while sales of tax-refund goods for departing tourists nearly doubled.

As global trade face uncertainties and the manufacturing sector reaches a state of maturity, the service sector offers a more resilient, labor-intensive path forward. Modern services are often less dependent on raw material imports and more reliant on human capital and digital innovation. By fostering high-quality market entities and premium brands, China is attempting to create a cycle where higher service consumption leads to more jobs in the service sector, which in turn boosts the disposable income required to sustain that very consumption.