Services Sector Opening‑Up to Boost MNCs: Testing, Flexible Workspace, and Shopping Tourism in Focus

Policy backdrop

Following new guidelines issued in early April to boost services consumption in eldercare, childcare, inbound consumption, and live performances, China’s Ministry of Commerce announced accelerated opening‑up in the services sector. Specific measures include expanding pilot programs in telecommunications, biotechnology, and wholly foreign‑owned hospitals, as well as refining the cross‑border services negative list.

Market watchers and business leaders expect that initiatives such as “Investing in China” and “Shopping in China” will continue to attract overseas investment, while easier market access will provide broader opportunities in finance, consulting, culture and tourism, education, and healthcare.

Sector growth data

China's services sector value‑added output reached RMB 20.61 trillion (USD 3.02 trillion) in the first quarter of 2026, a year‑on‑year increase of 5.2%, according to the National Bureau of Statistics.

Case study: Dekra (Germany) – testing and certification

Dekra Group, a German testing, inspection and certification company, plans to bring two new testing centers online in Suzhou (Jiangsu province) and Chongqing in the second half of 2026. The centers will expand services for automotive components, consumer electronics, and other industries.

Kilian Aviles, Dekra’s Executive Vice President and Head of Asia‑Pacific, said China has become a key growth engine for the company’s Asia‑Pacific operations. He attributed this to the further opening‑up of the services sector, which he said creates a more favorable environment for multinational companies.

Case study: IWG (Switzerland) – flexible workspace

International Workplace Group (IWG), a Swiss hybrid workspace platform, reported that its growth momentum has continued into 2026 following its fastest expansion in China last year. In 2025, the company signed 80 new workplace agreements. More than 10 new centers have already opened or are set to begin operations by early May, including projects in Xi’an (Shaanxi), Nantong (Jiangsu), and Hefei (Anhui).

Edward Hu, President of IWG China, said that China’s continued opening‑up of the services sector and efforts to improve the business environment are key drivers of growth. He noted that policy support for services consumption and urban development underpins demand for flexible office space.

Analysis: “Shopping in China” and inbound tourism

China has launched the “Shopping in China” initiative through measures such as streamlining visa procedures and improving departure tax refund arrangements to enhance its appeal as a consumption hub. Unlike small tourism economies, China offers a wide variety of goods, services, and amenities, according to Chen Yong, Associate Professor at EHL Hospitality Business School (Switzerland).

Chen argued that China's emergence as a shopping destination is driven less by traditional retail strengths (where markets such as London and Singapore have clear advantages) than by its comparative strengths in manufacturing and supply capacity, enabling it to meet a wide range of consumer demand. He further observed that inbound tourism can be viewed as another form of trade in goods, with China effectively acting as an exporter by leveraging its supply‑side advantages. Evidence suggests that shopping‑driven travel is particularly attractive to short‑haul markets, including Russia and Southeast Asian nations.

Implications for multinationals

For foreign services firms, the combination of regulatory opening, consumption stimulus, and supply‑side scale creates a differentiated value proposition. Testing and certification (Dekra), flexible workspace (IWG), and inbound shopping tourism all benefit from policy tailwinds and structural demand. However, success depends on local execution, understanding of regional market differences, and alignment with China’s evolving regulatory landscape.