Engineering Confidence? How China Is Trying to Stimulate Demand

Key Takeaways

• Beijing wants to improve household sentiment through service sector reforms to boost consumption.
• Key policy initiatives include expanded investment, better access to livelihood services, and targeted liberalization of high-end service sectors to attract foreign capital and upgrade service supply.
• Localizing discretionary spending and keeping services consumption onshore is paramount, and aligns with the “dual circulation” strategy.