What the new policy package actually does
On July 20, 2026, China’s Ministry of Commerce, together with eight other government departments, issued 19 policy measures to raise the quality of the domestic services sector, boost service consumption, and remove bottlenecks that have held the industry back. The measures cluster around five priorities: stronger support for service enterprises, encouragement of institutional innovation, expanded vocational skills training, a more robust credit-information platform, and stronger industry foundations.
Concretely, insurers are encouraged to design products tailored to the sector, service enterprises are supported in joining the long-term care system, and social insurance coverage is being extended to flexible workers. Localities may pilot ways to protect workers’ rights, publish employment guidelines, and standardize service agreements, while national occupational standards and skills assessments are being upgraded.
Why this is good news for overseas brands
At first glance “domestic services” sounds local. But the policy sits inside a much bigger shift: a five-year consumption-expansion plan released earlier this month that calls for more high-quality services, better-trained workers, a stronger standards system, and — explicitly — “fostering leading enterprises and well-known brands.” A June 2026 employment-first plan likewise pushes to upgrade childcare and eldercare networks.
For an overseas brand, three things follow. First, consumption upgrade enlarges and enriches the middle-class customer base that buys premium imported food, infant care, wellness, education and lifestyle products. Second, the push for recognized standards and branded, professional operators lowers the prejudice against foreign-branded quality and raises the bar your competitors must meet. Third, better vocational training and a credit platform make it easier to hire and manage local teams when you localize.
Two practical moves for entering the China market
- Align with the standards-and-brands narrative. When you localize packaging, certifications and after-sales, reference China’s service-standards upgrade. Buyers and platforms reward brands that look compliant, safe and premium.
- Enter through services-adjacent demand. Childcare, eldercare, wellness, education and food-service are all named as growth areas. A foreign brand can ride the demand wave via cross-border e-commerce, a local JV, or a distribution partner rather than building from scratch.
Bottom line: China is investing in the demand side of its consumer economy. Overseas brands that show up with quality, standards and local partnership will find 2026 a more welcoming entry point than ever.
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