Sports industry to grow fast in China

The State Council vowed to make sports industry and related areas new economic growth drivers in China. This is the first time Chinese government has tapped into the economic values of the sports sector. China’s sports industry will enter a new phase of development, says an article in the 21st Century Business Herald. Excerpts:

Sports industry is an important service sector and environmentally friendly industry. The development of the industry not only contributes to public health, but also boosts consumption and economic growth. Making it as a key national strategic industry is inevitable in China’s economic transformation.

The overall size of the sector in China was 950 billion yuan ($158 billion) in 2012. The State Council’s guideline said the figure is projected to reach 5 trillion yuan by 2025, and its contribution rate to national economic growth will rise from current 0.5 percent to 1.3 percent. This is an achievable target. In developed countries the sports industry’s contribution rate is about 1 to 3 percent.

China should reform its sports administration system to serve the healthy development of the sports industry. Tackling the bureaucracy, corruption and excessive government intervention in sports is an urgent task for the government.

Chinese government needs to increase its input in public sports sites to serve the public’s needs for exercises. Most of the State-run stadiums, gyms and swimming pools are too expensive to use for the average wage earners.