Published by ChinaMNC · Nima

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

China has issued a policy opinion to expand and upgrade its services sector by 2030, targeting a total scale of 100 trillion yuan. The plan focuses on 10 key areas across producer and consumer services, offering opportunities for foreign founders operating in China.

China's Services Sector Expansion: A Guide for Foreign Founders

On April 28, 2026, China's State Council Information Office held a regular 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 introduced a new policy document: the Opinions on Promoting the Expansion and Upgrading of the Services Sector (《关于推进服务业扩能提质的意见》). For foreign founders registering or operating a company in China, this policy signals where the government sees growth and where new opportunities may emerge.

Key Targets: 100 Trillion Yuan by 2030

The policy sets a quantitative goal: by 2030, the total scale of China's services sector should reach 100 trillion yuan. According to the briefing, this implies a growth space of 20 trillion yuan during the 15th Five-Year Plan period (2026–2030). In qualitative terms, the policy aims to basically form a development pattern with higher quality, better structure, superior quality, and greater vitality, and to cultivate more "China Services" brands.

These targets are not guarantees but indicative goals. For foreign founders, they suggest that the services sector will remain a priority area for policy support and market development.

Ten Key Areas: Where the Opportunities Lie

The policy deploys "ten key areas" for expanding and upgrading the services sector. These are divided into two broad categories: producer services and consumer services.

Producer Services: Supporting Manufacturing Competitiveness

In producer services, the policy focuses on six key areas and 17 critical links:

• Technology services
• Modern logistics
• Software and information services
• Supply chain finance
• Energy-saving and environmental protection services
• Business services

The goal is to promote professionalization and high-end development of R&D and design, enhance value in production links, and realize market value. Through strong producer services, the policy aims to effectively support the improvement of manufacturing competitiveness.

For foreign founders in technology, logistics, software, finance, or environmental services, these areas may offer openings for collaboration with Chinese manufacturers or for setting up wholly foreign-owned or joint venture entities.

Consumer Services: Meeting People's Needs for a Better Life

In consumer services, the policy covers four key areas and nine sub-sectors:

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

For upgrade-type services such as culture, tourism, and sports, the policy calls for expanding effective supply. For personalized services, it emphasizes refinement and precision to continuously meet the people's growing needs for a better life.

Foreign founders in hospitality, healthcare, education, or wellness may find opportunities to introduce international expertise and brands, though they should note that specific regulations apply in these sensitive sectors.

Practical Implications for Foreign Founders

While the policy does not detail specific incentives for foreign investment, it sets a direction for China's economic priorities. Foreign founders considering company registration in China should be aware of the following:

• Policy support likely follows: The services sector is a strategic priority. Local governments may introduce implementation measures, including support for foreign-invested enterprises in these areas.
• Market access: China's negative list for foreign investment still applies. However, the services sectors highlighted here may see gradual liberalization or encouragement.
• Compliance: Operating in these sectors requires understanding China's company law, tax regulations, and sector-specific rules. For example, supply chain finance and health services have specific licensing requirements.
• Brand building: The emphasis on "China Services" brands suggests a push for quality and international standards, which could benefit foreign firms with strong brand equity.

Foreign founders should monitor follow-up policies from ministries and local governments, as the briefings often precede concrete implementation rules.

Next Steps for Foreign Founders

If you are considering registering a company in China or expanding your existing operations, the services sector may be worth exploring. However, every business decision should be based on your specific circumstances and professional advice.

For assistance with company registration, licensing, and ongoing compliance in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535. Our team can help you navigate the regulatory environment and set up your business efficiently.

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