China unveils measures to improve domestic services sector and boost consumption

China’s Ministry of Commerce, together with eight other government departments, has rolled out a policy package to promote the high-quality development of the domestic services industry, a move experts said will help unlock household consumption, create jobs, and improve service quality through greater professionalization.

The policy package outlines 19 measures across five areas, including fostering market players, strengthening employment support, promoting integrated development with elderly care, improving industry regulation, and cultivating skilled workers.

Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said the measures address key bottlenecks facing the industry while supporting broader economic goals.

“The policy aims to improve the quality and expand the capacity of domestic services to unleash consumption potential, while enhancing the industry’s ability to absorb employment,” Hong said. “It is a concrete step to expand service consumption, stabilize employment, and improve people’s well-being.”

A key feature of the guideline is its support for employee-based domestic service companies, including measures to improve social security coverage and encourage more standardized employment.

Gao Chengyuan, deputy secretary-general of the Guangdong social policy research association, said the policy marks a shift from regulating the industry to building a comprehensive development ecosystem.

“Previous policies focused largely on regulation, while the new package links enterprise development, talent supply, social security, and the credit system into a coordinated framework,” he said.

However, Gao noted that expanding the employee-based model will require overcoming higher operating costs for businesses and encouraging workers to participate in social security programs.

“The proposed social security subsidies and more flexible employment arrangements are practical efforts to ease these challenges,” he said.

The guideline also seeks to better integrate domestic services with China’s growing elderly care sector by supporting qualified companies in providing in-home services under the long-term care insurance system and encouraging professional caregiving training.

Gao said clearer service standards and stronger career development pathways will help transform domestic services into a more professional and attractive occupation.

“When the industry offers stable incomes, better social protection, and clearer career prospects, it will be better positioned to attract skilled workers and meet rising demand for quality services,” he said.

China Daily