China eyes infrastructure and service sectors to drive growth

As China approaches its “Fifteenth Five-Year Plan” period, experts are outlining strategies to stimulate economic growth and expand domestic demand through infrastructure and service sectors.

Economist Yu Yongding argues that infrastructure investment remains a vital tool for stabilizing the economy and managing effective demand. He contends that the demand for modern infrastructure—including energy security, transportation, and communication networks—is far from saturated. Yu suggests that while concerns about debt and inefficiency exist, the government maintains sufficient fiscal space to utilize infrastructure as a lever to drive both consumption and income growth.

Concurrently, Li Jun, Director of the International Service Trade Institute at the Ministry of Commerce, identifies a potential 20 trillion yuan growth opportunity in the service industry. He emphasizes a dual approach: upgrading traditional services like catering and hospitality, while expanding emerging sectors through technological innovation and “AI+” initiatives. Li notes that strengthening service trade and improving service supply quality will be essential for creating high-quality employment and achieving a more balanced trade structure.