The HKUST Li & Fung Supply Chain Institute and the Expert Committee of the China General Chamber of Commerce are pleased to present the 22nd edition of our annual Ten Highlights of China’s Commercial Sector report.

In 2024, China’s commercial sector continued to evolve, driven by a combination of policy support and shifting consumer behaviours. This year has seen significant developments in digital transformation, service consumption, and environmental sustainability in the commercial sector, reflecting the dynamic nature of the market and the resilience of businesses operating within it.

Service consumption has remained a key growth area, with consumers increasingly seeking diverse and high-quality experiences. Innovations in service models, such as the integration of commerce, culture, tourism, sports, and health, have played a crucial role in this growth. The government’s emphasis on building a high-quality service industry has further supported these trends, creating new opportunities for businesses to thrive.

The competitive landscape has intensified, with businesses facing shrinking profit margins and high turnover rates. However, companies that focus on cost control, efficiency improvements, and innovative business models have managed to navigate these challenges successfully. The importance of agile and resilient supply chains has also become evident, particularly for enterprises expanding into overseas markets. For companies that go global, effective localization strategies and strategic partnerships are key to success in regions like Southeast Asia, the Middle East, and Latin America.

With input from more than 160 top-tier mainland experts, Ten Highlights once again identifies top trends of the past year and anticipates the developments that will shape China’s commercial landscape in 2025.

In 2025, China’s commercial sector is expected to continue growing, driven by increased domestic consumption and technological advancements. The government’s focus on creating a unified national market will further streamline the trade system and enhance market competitiveness. The service sector, particularly e-commerce and digital services, will continue to expand, fuelled by rising consumer expectations for convenience and experience. Additionally, sustainability will play a crucial role, as consumers increasingly demand ecofriendly products. The emerging rural markets will present new opportunities for businesses, while fierce competition will necessitate innovative strategies and effective localization to meet diverse consumer needs.

For Ten Highlights of the previous years, please visit here.