Dahe Fortune Cube:

We have noted the robust growth momentum in service consumption in the first half of the year, which has emerged as a new highlight in expanding domestic demand and a new engine for driving consumption growth. What are the key characteristics of current service consumption? And what steps will be taken next to further expand service consumption? Thank you.

Yan Dong:

Thank you for your questions. I'll take these. Driven by the sustained impact of various policies to expand domestic demand and promote consumption, China's service consumption has maintained steady growth, demonstrating strong resilience and vitality. In the first half of the year, service retail sales increased by 5.3% year on year. We have identified three prominent new features of service consumption:

First, quality upgrading is fostering new forms of innovation, fueling stronger consumption vitality. Consumer demand is shifting from a focus on availability to quality. MOFCOM, together with relevant departments, has been working to implement initiatives to upgrade services for public benefit, optimize service supply in the fields of culture, tourism, sports and leisure, and promote the sustained release of demand for personalized and high-quality services. In the first half of the year, retail sales of tourism consulting and leasing services and cultural and sports leisure services increased by 11.3% and 10.4%, respectively, while sales revenue from tourism and entertainment services rose by 12.3% year on year.

Second, new growth drivers are gaining momentum, providing stronger impetus for the growth of service consumption. New business forms such as digital entertainment, online fitness and "internet + healthcare" services are developing rapidly. Online service retail sales grew by 6% in the first half of the year, while communication and information services maintained rapid growth. Inbound consumer spending stayed robust, with the number of visa-free entries by foreign nationals increasing by 30.6% year on year in the first half of the year, making it more convenient for overseas visitors to travel and live in China.

Third, business forms are being revitalized, creating more dynamic consumption scenarios. MOFCOM and the Ministry of Finance have deepened pilot programs for new forms, models and scenarios of consumption, promoting the integrated development of commerce, tourism, culture, sports and health. A number of immersive and interactive consumption scenarios are being implemented at an accelerated pace. In the first half of the year, sales revenue from immersive experience categories such as cultural performances and museum visits increased by 28.3% and 24.6%, respectively. The national railway operated 1,797 tourist trains, along with 445 customized concert-goers and sports fans special trains, offering consumers richer and more engaging experiences.

Service consumption is currently serving as the ballast for boosting consumption and is emerging as the main driver for future growth. Going forward, we will ensure the implementation of the plan for expanding consumption during the 15th Five-Year Plan period, leverage our leading role in the service consumption inter-departmental working mechanism, and promote improvements in service consumption to benefit consumers in the following four aspects:

First, unlocking growth potential and broadening scope of service consumption to accelerate the cultivation of new growth drivers. Recently, together with relevant departments, we issued a series of policy documents aimed at fostering new growth areas in service consumption, such as the integration of rail and tourism, high-quality development of domestic services, and the cultivation and expansion of the automotive aftermarket. We will ensure the effective implementation of these policies, continue to introduce innovative support measures in niche sectors such as transportation, performances and sports events, and encourage local governments to actively explore effective ways to cultivate new growth points in service consumption.

Second, reinvigorating consumption scenarios to innovate more diverse service experiences. We will expand pilot programs featuring emerging consumption forms, business models and scenarios, promote the integration of service consumption formats, scenario innovation and industrial clustering, and create a new range of high-profile and high-impact consumption scenarios, so as to create new demand with new supply and activate new consumption with new scenarios.

Third, cultivating new growth drivers to further unleash consumption potential. We will continue to host flagship events such as the "Service Consumption Season" and "Chinese Food Festival," and organize featured activities, including Household Service Consumption Season, Food Carnival and Outdoor Sports Season. Catering to summer demand for parent-child activities, leisure, travel and housekeeping services, we will guide lifestyle platform enterprises to organize the "August 8th Services Consumption Festival" on a market-oriented basis, so as to use event-driven promotion to attract consumers and channel foot traffic into business opportunities. We will cultivate the coordinated development of online and offline consumption, and leverage digital technologies to empower service consumption to deliver greater benefits to the people.

Fourth, dismantling barriers to fully unleash market vitality. We will eliminate restrictive measures in the service consumption sector, attract more foreign and private capital to the service consumption sector, improve the system of standards for service consumption, and promote the formulation and revision of standards in key areas, thereby enhancing service quality through standardization. Thank you.