China is embarking on an ambitious plan to significantly expand its sports sector, aiming to reach a valuation of 7 trillion yuan (approximately $980 billion) by 2030. This initiative, detailed in new government guidelines, seeks to leverage sports consumption as a key driver for economic growth and social development.
Driving Economic Growth Through Sports
The Chinese government views the sports industry as a crucial component of its strategy to expand domestic demand and stimulate economic growth. The newly released 20-measure directive from the State Council aims to spur economic activity by promoting a wide range of sports-related ventures, from grassroots leagues to international competitions.
This target represents a near doubling of the sports sector’s value from 2023, when it was valued at 3.67 trillion yuan, contributing 1.15% to the national GDP. The plan involves strengthening coordination for regions seeking to host international events and fostering Chinese-branded events with global appeal.
Expanding Sports Consumption and Offerings
To achieve its ambitious goal, China plans to enrich its sports offerings by developing the outdoor sports industry and expanding the “ice and snow economy.” Specific measures include promoting diverse outdoor activities like mountaineering, water sports, and motorsports, as well as developing high-quality outdoor sports destinations. The guidelines also encourage low-altitude flying sports and aviation model activities, provided safety is ensured.
Furthermore, the government intends to stimulate consumer demand by integrating sports facilities into urban spaces, creating immersive sports experiences, and extending operating hours for venues to promote nighttime sports consumption. Financial incentives, such as sports consumption coupons, are also proposed to encourage broader participation.
Financial Support and Industry Development
Recognizing the need for robust financial backing, Chinese authorities are urging financial institutions to increase their investment in the sports sector. This includes support for loans, insurance, and currency exchange services for sports event organizers, particularly for international events. The guidelines also encourage the issuance of corporate bonds for large-scale infrastructure projects like stadiums and sports parks, and support for sports industry firms seeking stock market listings and private equity investment.
The plan also emphasizes the application of new technologies, such as Big Data and artificial intelligence, to enhance the digitalization of sports products and services, aiming to cultivate a vibrant and sustainable sports ecosystem.