Economists urge China to enhance support for services consumption

Economists in China are encouraging the government to increase support for services consumption. While Beijing has focused on subsidies for goods to boost household spending, experts believe this is not enough. They argue that promoting services consumption is vital for economic growth. Yan Se, a deputy director at Peking University, highlighted that people do not frequently buy goods like televisions. Services, on the other hand, are needed more regularly. He suggested that the government could quickly expand its subsidy programs to include the services sector. Chen Yuyu, another economist from Peking University, stated that the service industry will play a major role in job creation in the future. He emphasized the importance of having a strong and innovative manufacturing industry, rather than just one that contributes a lot to GDP. Liu Shijin, a former adviser for the People's Bank of China, pointed out that the main issue with low consumption is the lack of spending on services. He noted that while goods consumption remains stable, services consumption is closely linked to urbanization and overall economic health.