A new economic transformation is underway on the Chinese mainland as experts reveal that investing in people is key to unleashing a new era of service consumption. Research shows that once a country’s per capita GDP surpasses $10,000, the share of service consumption accelerates—and when it hits $15,000, services begin to dominate household spending.
Currently, with the per capita GDP exceeding $13,000, service consumption accounts for 46.1% of household expenses, a bit lower than levels seen in the US, Japan, and South Korea at similar developmental stages. This signals a pivotal moment as the Chinese mainland shifts from a goods-dominated model to a more balanced model that values both goods and services.
Traditional sectors such as hospitality, catering, and domestic services still lead the way. However, enormous potential lies in developing mid- to high-end services like healthcare, wellness, and customized consumption. Cultural and tourism-related spending, for example, is ripe for transformation beyond just ticket sales to a more integrated cultural-toursim model. In 2023, the trade deficit in travel services reached $181.7 billion, highlighting vast untapped opportunities for attracting both domestic and international consumers.
This shift is not just about numbers—it’s about people. By investing in human capital, uplifting skills, and tailoring services to evolving tastes, the Chinese mainland can tap into a wave of innovation and quality of life improvements. Whether you’re a student, budding entrepreneur, or a travel enthusiast, these developments are set to reshape markets and open up exciting opportunities. 🚀📈
Overall, the movement towards enhanced service consumption underscores a forward-thinking strategy: a balanced, people-first approach that promises dynamic growth for the future.
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Service consumption and 'investing in people' key to expanding demand
cgtn.com
