In a bold push to invigorate consumption and tourism, China is leaning into the growing power of its sports economy. Last month, Shanghai played host to a record 220,000 spectators at the Formula One Chinese Grand Prix—a flagship event projected to generate over 5 billion yuan (US$685 million) in both direct and indirect economic benefits, according to organizers.
The race is just one of more than 170 international and national sporting events planned in Shanghai this year. But the city’s enthusiasm is far from an isolated case. Across the country, local policymakers are increasingly turning to sports as a catalyst for economic growth, especially as traditional sectors like real estate wane in influence.
While the central government has introduced policies to bolster the industry, the rising public enthusiasm for sports is giving provincial leaders confidence that this “sunrise sector” can deliver. “Despite a slowing economy, the sports industry has emerged as a bright spot,” said Liu Dongfeng, professor at the School of Economics and Management at Shanghai University of Sport. “Local governments are especially interested in how it integrates with other sectors.”
Backing this optimism, China’s central bank and other financial regulators released a comprehensive plan last week aimed at expanding financial support for the sports sector. This move is part of a broader strategy to cultivate sustainable, high-growth industries as the country targets a 5% GDP growth rate in 2025 amid ongoing geopolitical tensions and trade frictions with the United States.
The sports economy is already showing promise. In 2023, it grew by 11.3% year-on-year, reaching a total value of 3.7 trillion yuan—contributing 2.8% to the national GDP. By 2035, the sector is expected to become a pillar industry, accounting for 4% of China’s GDP, according to a State Council directive issued in 2019.
As part of this initiative, financial regulators are encouraging banks to invest in infrastructure projects like stadiums, fitness parks, and exercise trails. Experts see this as an opportunity to reignite construction activity, but also caution against overspending. “Local governments must weigh their fiscal capacity and actual demand,” Liu warned, referencing the past failures of so-called ‘white elephant’ projects—costly and underused facilities built with little foresight.
Despite an overall consumer cautiousness, spending on sports and fitness remains relatively strong. As China navigates economic headwinds, its sports boom may offer more than entertainment—it could be the sweaty success that fuels its next wave of growth.
Uncover the latest trends and insights with our articles on Visionary Vogues
