Published by ChinaMNC · Naqu

China's New Plan to Expand and Upgrade Services: What Foreign Founders Need to Know

A State Council policy aims to grow China's services sector to 100 trillion yuan by 2030, with implications for foreign founders in manufacturing support services, logistics, software, healthcare, tourism, and more.

China's Services Sector Set for Major Expansion

On April 28, 2026, China's State Council Information Office held a policy briefing where officials from the National Development and Reform Commission, Ministry of Commerce, Ministry of Culture and Tourism, State Administration for Market Regulation, and Ministry of Industry and Information Technology discussed a new policy document: the Opinions on Promoting the Expansion and Upgrading of the Services Sector.

For foreign founders building businesses in China, this policy signals where the government sees growth opportunities—and where regulatory attention will be focused. The plan sets an ambitious target: by 2030, the total scale of the services sector should reach 100 trillion yuan, implying a 20 trillion yuan increase during the 15th Five-Year Plan period (2026–2030).

Qualitative Goals: Higher Quality, Better Structure

Beyond the headline number, the policy outlines qualitative objectives. It aims to basically form a development pattern with higher quality, better structure, superior products, and greater vitality, and to cultivate more "China Services" brands. For foreign founders, this suggests that service quality and branding will become increasingly important competitive factors.

Ten Key Areas for Expansion and Upgrading

The document identifies ten key areas for expanding and upgrading the services sector, divided into two broad categories: productive services and living services.

Productive Services: Supporting Manufacturing Competitiveness

For productive services, the policy focuses on six key areas and 17 critical links:

• Technology services: Promoting specialized, high-end R&D and design.
• Modern logistics: Enhancing efficiency and value in production processes.
• Software and information services: Supporting market value realization.
• Supply chain finance: Facilitating value creation.
• Energy-saving and environmental protection services: Supporting green production.
• Business services: Professionalizing and upgrading support functions.

The overarching goal is to use strong productive services to provide effective support for improving the competitiveness of manufacturing. Foreign founders in these fields—especially in R&D, logistics, software, and supply chain finance—may find new opportunities as manufacturing firms seek specialized service providers.

Living Services: Meeting Consumer Needs

For living services, the policy covers four key areas and nine sub-sectors:

• Resident services
• Elderly care and childcare
• Health services
• Cultural, tourism, and sports services

The policy calls for expanding effective supply in upgrade-type services such as culture, tourism, and sports, and for refining personalized services to better meet people's needs for a better life. Foreign founders in healthcare, senior care, tourism, and related fields should note this emphasis on both scale and quality.

What This Means for Foreign Founders

While the policy does not specify new incentives or market access rules for foreign investors, it provides a clear roadmap of government priorities. If you are registering or operating a company in China, consider these implications:

• Sector focus: The ten key areas are likely to receive policy support and regulatory attention. Aligning your business with these areas may help with licensing and local partnerships.
• Manufacturing linkages: If your business serves manufacturers, productive services are a priority. Emphasize how your services enhance manufacturing competitiveness.
• Brand building: The push for "China Services" brands suggests that quality and branding will matter more. Foreign founders should invest in service quality and brand reputation.
• Consumer upgrade: In living services, demand for higher-quality and personalized services is growing. Foreign founders in health, elderly care, and tourism can tap into this trend.

As always, foreign founders should ensure compliance with sector-specific regulations and consider local partnerships to navigate the market. The policy briefing did not announce new foreign investment rules, so existing frameworks remain in place.

Next Steps

Foreign founders interested in these sectors should monitor further implementation details from ministries and local governments. For assistance with company registration and operations in China, reach out to ChinaMNC.

Contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.