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Shanghai eyes stronger services backed by tech

Metropolis unveils guideline to boost sector's role in driving consumption

By SHI JING in Shanghai | CHINA DAILY | Updated: 2025-03-21 07:39
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Diners eat at a restaurant in Shanghai on Feb 4. The city's services sector grew 5.7 percent year-on-year and contributed 78.2 percent to Shanghai's GDP last year. [Photo provided to China Daily]

The high-quality development of Shanghai's services sector should better serve technological advancement and boost consumption, the city's municipal government said in a recent guideline.

According to the guideline, which contains 31 detailed measures, the services sector must further consolidate its role as an economic driver, seek new growth momentum, better stimulate consumption and create a quality ecosystem.

While the services sector grew 5.7 percent year-on-year and contributed 78.2 percent to Shanghai's GDP last year, or more than 4.2 trillion yuan ($580 billion), the number of high-level service providers is still limited and the services provided are not diversified enough, said Qiu Wenjin, deputy director of the Shanghai Municipal Development and Reform Commission, in a news briefing on Monday.

Service providers have not invested enough in digitalization and they need to show improvement in their overall international competitiveness. Meanwhile, the services sector has much room for growth in contributing to consumption, Qiu said.

It is against this backdrop that the new guideline has been released.

In the guideline, more attention has been paid to those service providers — such as information services, technology services, entertainment, healthcare and catering — who can stabilize growth, generate more jobs and expand consumption, he added.

To address the development needs of new quality productive forces, the construction of high-quality incubators, proof-of-concept centers and other platforms for the transformation of scientific and technological achievements will be supported.

Companies developing large language models will be aided in setting up industry funds. Technology service companies and institutions will gain access to the city's special technology loans to reduce costs, according to the new guideline.

In addition, universities and research institutes will be encouraged to establish an operating model under which ownership, operation and income rights of technology achievements are separated, said the guideline.

Efforts will be made to introduce more services sector leaders, said Qiu Wei, chief engineer of the Shanghai Municipal Commission of Economy and Informatization.

The Shanghai Global Investment Promotion Conference 2025, which is scheduled for Tuesday, will introduce more quality information technology service companies and industrial service providers so that a complete industrial chain can be built in Shanghai. More new quality productive forces in the services sector will thus be nurtured, she said.

Besides, industrial enterprises will be encouraged to deepen their cooperation with leading internet companies and e-commerce platforms such as Xiaohongshu and Pinduoduo for online marketing. Industrial companies can hopefully explore more consumption outlets this way, Qiu Wei said.

New types of information products will be provided in Shanghai, she said.

"Finance, education, healthcare and manufacturing will be the major sectors seeking AI application scenarios. Professional service providers specializing in metaverse-related technologies, such as extended reality smart devices, will also be nurtured in the city," Qiu Wei added.

Luo Zhisong, chief economist at the Shanghai Municipal Commission of Commerce, pointed out that the inadequate supply of service-related products currently means the city is unable to fully explore its consumption potential. Therefore, Shanghai will create high-quality, diversified and complex service consumption scenarios.

New models, such as housekeeping integrated with property management services, housekeeping integrated with elderly care and property management services integrated with other daily life services, have already emerged in Shanghai. Under the same logic, tourism, sports and healthcare can also be combined with other services, Luo said.

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