China Pivots Economic Strategy Toward Service Sector Growth Through 2030

Beijing, Tuesday, 20 January 2026.
Beijing has unveiled a comprehensive policy framework for 2026–2030 designed to overhaul the nation’s economic engine by prioritizing domestic consumption over export-led manufacturing. Addressing a critical structural imbalance where 2025 industrial output growth (5.9%) outpaced retail sales (3.7%), the initiative targets the services sector as the primary driver for future stability. While China achieved its 5% GDP target in 2025—surpassing 140 trillion yuan—authorities recognize that relying on exports to offset weak domestic demand is unsustainable. The new strategy explicitly focuses on “silver economy” services, digital integration, and leisure industries to bridge the gap. With consumption already contributing 52% to economic growth last year, the Ministry of Finance is doubling down with extended interest subsidies and trade-in incentives through 2026. For investors, this marks a definitive pivot toward consumer-facing opportunities as Beijing seeks to correct the disparity between robust supply and softening demand.