Services sector to open wider

China will further open its services sector in 2026, widening market access and accelerating pilot projects in the telecommunications, healthcare and education sectors, as policymakers seek to translate commitments into concrete outcomes, government officials said on Monday.

Speaking at a news conference in Beijing, Wang Ya, head of the department of foreign investment administration at the Ministry of Commerce, said the policy measures will support foreign-invested service companies in extending their value chains in China, enabling more specialized, integrated and digitalized operations.

The government will ensure that overseas investors can claim tax credits when reinvesting profits earned in China, while providing equal treatment to foreign-funded businesses in consumption promotion, government procurement and bidding activities, said Wang.

Vice-Minister of Commerce Yan Dong said these measures will help steer foreign investment toward service-oriented consumption and improve the quality and diversity of services supply.

Aiming to guide more foreign investment toward advanced manufacturing, modern services, high-tech industries, energy conservation and environmental protection, China will put the 2025 edition of its Catalogue of Encouraged Industries for Foreign Investment into force on Feb 1, 2026, according to information released by the Ministry of Commerce.

The updated catalogue contains 1,679 items, representing a net increase of 205 entries from the 2022 version, along with revisions to 303 items.

Against this policy backdrop, International Workplace Group, the Switzerland-headquartered hybrid workspace platform operating in over 120 countries and regions, will deploy additional resources to expand its presence in China's lower-tier cities, targeting emerging demand beyond major metropolitan areas.

Edward Hu, country general manager of IWG China, said the company sees China's ongoing push to open up the services sector and improve the business environment as a key driver of its expansion, with policy support for services consumption and urban development underpinning sustained demand for flexible office solutions.

Hu said IWG will partner closely with local property owners to revitalize existing commercial assets while leveraging its global network, corporate client base and standardized operating systems to support scalable, sustainable growth in China this year.

Boosting consumption

As China expands opening-up in the services sector, authorities are also turning their attention to consumption, seeking to ensure that policy gains are felt more directly by consumers.

Yang Mu, head of the department of market operation and consumption promotion at the Ministry of Commerce, said China will further optimize the shopping environment by accelerating the development of international consumption hub cities, advancing pilot programs to build an internationally oriented commercial environment, and supporting trials of new retail formats, models and scenarios.

"The efforts aim to create a number of highly visible consumption scenarios, enabling both domestic and overseas consumers to better enjoy high-quality living experiences," she said.

Under its plan, the government will organize more than 20 "Shopping in China" themed promotional events across the country and support 15 pilot cities in hosting dedicated city showcase events this year.

Launched in April 2025, the "Shopping in China" initiative aims to create a more internationally friendly consumption landscape and enhance the country's appeal as a global consumption hub through measures such as streamlining visa procedures and improving departure tax-refund arrangements.

The policy tailwinds have continued to fuel both inbound tourism and spending by overseas visitors.

Since Nanjing, the capital of East China's Jiangsu province, became one of the ports allowing 24-hour direct transit without immigration clearance in early November last year, the policy — combined with more favorable departure tax-refund arrangements — has enabled foreign transit passengers to shop, dine and consume freely during layovers, further enhancing the city's appeal as an international consumption hub.

The tax-refund offices at Nanjing Lukou International Airport and Wuxi Sunan International Airport handled a total of 1,705 refund claims in 2025, with the value of verified applications reaching 52.72 million yuan ($7.58 million), jumping 138.79 percent and 91.45 percent year-on-year, respectively, data from Nanjing Customs showed.