China to target domestic demand boost in services sector

China aims to enhance domestic consumption in the services sector to reduce reliance on overseas demand and address industrial overcapacity. Vice Commerce Minister Yan Dong highlighted growth areas such as transportation, tourism, and online services. The government will also optimize trade-in programs for consumer goods. Despite efforts, consumer confidence remains low due to economic uncertainty and a property market slump, with retail sales growth lagging behind GDP. The government has allocated funds to support consumer goods purchases and is preparing measures to boost services consumption, contingent on rising household incomes.