According to a report in China Daily on January 27, 2026
Beijing moves to widen market access across telecoms, healthcare, and education, while accelerating consumption-led growth, signaling new opportunities for foreign businesses in China.
China is set to further open its services sector in 2026, expanding market access for foreign investors and accelerating pilot projects in key areas such as telecommunications, healthcare, and education, according to senior officials at the Ministry of Commerce.
The measures aim to translate policy commitments into tangible outcomes, supporting foreign-invested service companies in extending their value chains and adopting more specialized, integrated, and digitalized operations. Tax incentives will allow overseas investors to reinvest profits earned in China, while foreign-funded companies will receive equal treatment in consumption promotion, government procurement, and competitive bidding processes.
“The goal is to steer investment toward service-oriented consumption and improve both the quality and diversity of services offered to the public,” said Vice-Minister Yan Dong.
Encouraging Industries and Investment
From February 1, 2026, China will implement the latest edition of its Catalogue of Encouraged Industries for Foreign Investment, featuring 1,679 items — a net increase of 205 entries since 2022 — along with revisions to 303 existing items. The updated catalogue is expected to channel foreign capital toward advanced manufacturing, modern services, high-tech industries, and environmentally sustainable projects.
For multinational firms, this policy environment offers clearer pathways to scale operations in China’s increasingly service-oriented economy. Switzerland-based hybrid workspace operator International Workplace Group (IWG), for example, plans to expand its footprint in lower-tier Chinese cities, targeting emerging demand beyond first-tier metropolitan areas. Edward Hu, country general manager of IWG China, said that policy support for services consumption and urban development underpins sustainable growth prospects for the sector.
Consumption as a Driver of Growth
The government is also actively linking service sector liberalization to broader consumption-driven growth. Authorities are enhancing the shopping environment through the development of international consumption hub cities and pilot programs to introduce new retail formats, models, and scenarios. Over 20 themed promotional events under the “Shopping in China” initiative will be held nationwide in 2026, complemented by 15 city-level showcases.
Since late 2025, Nanjing and Wuxi have implemented streamlined procedures enabling 24-hour direct transit for foreign passengers, coupled with improved departure tax-refund arrangements. These measures have directly boosted spending by overseas visitors: tax-refund claims at Nanjing Lukou and Wuxi Sunan airports jumped 138.8% and 91.4% year-on-year in 2025, totaling 52.72 million yuan ($7.58 million).
“The combination of market liberalization, tax incentives, and enhanced international consumer experiences is designed to make China a more attractive destination for global services providers,” said Yang Mu, head of the department for market operation and consumption promotion.
Implications for Investors
For global investors and multinational enterprises, the expansion of China’s services sector signals a two-fold opportunity: first, to participate in a growing, consumption-driven domestic market; second, to leverage policy support for integrated, digitalized, and specialized service operations.
By aligning investment policies with urban development and consumption strategies, China is creating a more predictable and internationally friendly environment, encouraging foreign firms to embed deeper into local value chains while meeting the rising demand for high-quality services.