Chinese sporting goods suppliers were encouraged by a new national plan that aims to strongly stimulate the country's sports industry at large. The State Council was quoted as saying that it wanted to raise the value of the industry to 5 trillion yuan (€645bn-$820bn) by 2025. It would then reach about 1 percent of China's GDP, compared with 0.6 percent in 2012. The government intends to increase sports participation to 500 million Chinese people exercising regularly; to improve infrastructure to reach an average of 2 square meters of available facilities per person; and to raise private and foreign investment in the sports business, partly through the listing of sports companies on the stock exchange. For this purpose, it is even prepared to adjust some of the rules such as the authorizations required to organize sports events. While the plan focuses on opportunities in the area of sports facilities, events and tourism, the measures are directly relevant to increase interest in sports. Chinese media reported that the government also intended to designate new and high-tech sports companies as being eligible for a 15 percent reduction in income tax, while sports companies could also qualify for a sales tax rate as low as 3 percent. This latest plan and its potential impact form part of the analysis in our upcoming Chinese market research report.

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