BEIJING (Reuters) – China on Tuesday unveiled measures to boost services consumption, pledging to further open sectors such as internet and culture and to encourage the hosting of international sports events, in a bid to support the slowing economy.
The measures, jointly released by nine government agencies including the commerce ministry, finance ministry and central bank, also pledged to attract more foreign and private capital to fields such as mid- to high-end medical care.
Authorities also plan to introduce more international sports events, support local governments in holding mass sports activities, and develop high-profile boutique events, professional leagues and sports brands.
China’s factory output and retail sales reported their weakest growth since last year in August, keeping pressure on Beijing to roll out more stimulus to fend off a sharp slowdown in the world’s second-largest economy.
The country will promote the opening of internet, culture, telecommunications, medical care and education sectors, while relaxing market access in mid- and high-end medical care, leisure vacation.
China will seek to attract more overseas visitors by expanding visa-free entry and improving visa policies.
China will use central government funds, local special bonds to support the construction of cultural, tourism, elderly care, childcare and sports facilities, according to the agencies.
Monetary policy tools will be deployed to encourage financial institutions to expand credit supply in service consumption and increase lending to businesses in the sector.
In August, China unveiled interest subsidies for businesses in eight consumer service sectors including catering and tourism, in a bid to support services consumption amid a slowing economy.
Chinese economists and policy advisers have called for stepping up support for the country’s burgeoning services sector to boost consumption, which top leaders made a priority this year to spur growth amid U.S. tariff disputes.
China has also allocated 231 billion yuan ($32.47 billion) in special treasury bonds for a consumer goods trade-in program, focusing on home appliances, cellphones, and tablets.
(Reporting by Beijing Newsroom and Kevin Yao; Editing by Andrew Heavens)
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