China is reportedly now looking to further develop its growing home service sector through the integration of new technologies, education, and financial support systems. The country is currently experiencing a growing demand for home services, which includes cleanings services, domestic help, baby sitters, and elderly care. The demand has rapidly increased mostly due to the growing number of elderly Chinese citizens and the increase in families with two children.
Economic insiders explained that the promotion of this particular sector will boost domestic consumption, which will, in turn, attract new businesses and investments into the country. At the recently held State Council's executive meeting, which was headed by Premier Li Keqiang, it was decided that the country should implement different measures and legislation to further develop the home service sector.
To achieve this goal, the council also decided that they will be encouraging the use of new technologies and the internet for both consumers and providers. Traditional home service companies are currently struggling to compete against newer firms using mobile apps and online listings for their services. Online systems have proven to be far superior in providing more efficient and quality services to clients. A statement released after the meeting mentioned that proper supervision should also be implemented on companies going digital to ensure that the quality of service and operation is standardized.
Some of the measures that were approved during the meeting include tax reductions for startup companies and other small businesses within the sector. The council also approved new subjects and majors to be added to vocational schools and colleges. Welfare programs for the men and women working in the home service sector will also be launched.
Existing companies within the sector have mentioned that they are welcoming the new measures seeing as that they will greatly improve quality standards within the industry. The measure will also undoubtedly attract new investments and businesses, but existing companies are willing to improve their services to face against the new competitions.
Companies such as Ayibang and Daojia, both online home service providers, have previously expressed their concerns of having an established and standardized system for the entire industry. With the governments support, that goal may now be within reach. The measures will also be greatly beneficial to industry workers, who will now get the government's support in acquiring benefits such as housing and social security.
According to the Chinese Academy of Labor and Social Security, there are an estimated 30 million people working in the particular sector as of 2018. That number accounts for about 4 percent of the country's workforce. As China's economy continues to grow, more people can now afford to hire domestic help. The academy believes that the increased demand will help China's economy grow through increased employment and revenue.
