Key Highlights:
- China aims to grow the services sector to 100 trillion yuan ($14.7T) by 2030.
- The sector already reached 80.9 trillion yuan in 2025, growing 5.4% annually.
- Q1 2026 GDP expanded 5.0% YoY, beating expectations.
- Benchmark lending rates held at 3.00% (1Y) and 3.50% (5Y) for the 11th month.
- Yuan may be undervalued by 15–30%, reflecting capital outflows.
China has unveiled a major economic strategy to expand its services sector to 100 trillion yuan by 2030, signaling a shift toward consumption-driven growth. The move aims to boost employment, innovation, and domestic demand as policymakers reduce reliance on heavy industry.
The economy showed resilience in early 2026, with GDP rising 5.0% year-on-year, supported by exports and industrial output. However, authorities kept lending rates unchanged at 3.00% and 3.50%, indicating a cautious policy stance despite global uncertainties.
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