Opportunities in China’s night-time economy
European companies looking to tap into China’s domestic consumption market should pay attention to a sector that is often overlooked: the night-time economy. In this article, Yacheng Sun, Maggie Wenjing Liu and Lesley Luyang Song examine the policy landscape, regional developments and practical opportunities for foreign businesses.
China’s night-time economy—defined as service-sector consumption occurring between 6 PM and 6 AM—has emerged as a critical driver of domestic consumption and urban vitality. According to industry research, the market scale increased from Chinese yuan (CNY) 22.54 trillion in 2018 to CNY 50.25 trillion in 2023.[1] Ministry of Commerce surveys indicate that 60 per cent of urban consumption occurs during night-time hours, with major shopping centres generating more than half of their daily sales between 6 PM and 10 PM.
China’s four unique advantages
China possesses four distinctive advantages for developing its night-time economy that distinguish it from other major economies and create opportunities for foreign businesses:
Public safety: Chinese cities rank among the world’s safest for night-time commercial activity. Residents can walk the streets late at night with a sense of security far exceeding most Western countries, providing the fundamental prerequisite for night-time consumption and reducing operational risk for businesses.
Advanced digital infrastructure: Mobile payment penetration exceeds 90 per cent, and 5G networks provide extensive coverage, creating a solid foundation for the digital transformation of night-time commerce.
Widespread delivery networks: Millions of delivery riders constitute a 24-hour logistics network that not only satisfies consumer demand but also creates substantial employment opportunities, allowing businesses to extend service hours without requiring customers to visit physical locations.
Deep cultural heritage: From Tang and Song dynasty night markets to the modern night-time economy, over a thousand years of tradition has cultivated unique night-time consumption habits and cultural identity among Chinese consumers.
The consumption landscape
The sector has developed a comprehensive ecosystem spanning multiple formats: night-time dining (from street food to Michelin-starred restaurants, forming a distinctive ‘midnight canteen’ culture); night shopping (transitioning from traditional department stores to experiential retail and 24-hour convenience stores); cultural entertainment (museum night programmes, late-night theatre, immersive experiences); night tourism (river cruises, illuminated landmarks); sports and fitness (night running, evening sports leagues). Evening education is another bright spot – Shanghai’s citizen art school saw 650,000 people competing for just 10,000 places on its 2023 autumn evening programme, demonstrating strong demand for night-time cultural programming.
The policy landscape
Between 2010 and June 2025, all 31 provincial-level administrative regions issued night-time economy policies, totalling 61 documents and representing significant policy mobilisation.
Geographic distribution: There is a clear distribution pattern to announced policies, with relevant policies concentrated overwhelmingly in the east. The North China region leads with 15 policies, with Tianjin alone accounting for nine—the highest of any province/municipality—demonstrating the proactive policy innovation capacity of municipalities directly under the central government. East China follows with 12 policies, reflecting economically developed regions’ emphasis on the night-time economy. Henan Province ranks second nationally with four policies, demonstrating the populous region’s urgent need to leverage its night-time economy to stimulate consumption and generate jobs. Figure 1 illustrates the geographic distribution of night-time economy policies across China’s 31 provincial-level regions, with policy density closely following the Hu Huanyong Line that historically divides China’s densely populated east from its sparsely populated west.
Policy development shows clear phased characteristics: As Figure 2 shows, the ‘exploration period’ (2010–2018) produced only seven policies across nine years, reflecting that the night-time economy had not yet garnered mainstream policy attention. The ‘explosion period’ (2019–2020) marked a turning point: 2019 saw five policies (a 400 per cent increase from 2018’s single policy), and 2020 reached a peak with 14 policies announced. This surge coincided with the Ministry of Commerce designating night-time economy development as a key consumption promotion measure. The maturation period (2021–2024) produced 26 policies over four years, with policies becoming more systematic, coordinated and operationally specific.
The night mayor system
Shanghai pioneered the ‘night district chief’ system in April 2019, creating a model that has since spread across China. Each of the city’s 16 districts has assigned a deputy district head to serve as night district chief, responsible for coordinating night-time economy development and reporting to district leadership. These officials are supported by over 130 ‘nightlife CEOs’ recruited from industry—typically senior executives from major commercial and entertainment enterprises—who serve as bridges between government and market.[2]
Beijing has adopted a similar model with its three-tier ‘lamplight keeper’ system spanning municipal, district, and street levels. Beijing’s Qianmen Street, designated as one of the city’s first four ‘night Beijing’ landmarks in 2019, exemplifies this approach. The historic street now features extended evening hours for traditional shops, themed lighting and cultural programming, including Beijing opera and craft demonstrations – attracting 35 million visitors in 2024, up 75 per cent from 2019.[3]
In Shanghai, night district chiefs are appointed from among district leaders responsible for coordinating night-time economic development. The nightlife CEO system encourages districts to publicly recruit individuals with management experience in night economy-related industries to assist the night district chiefs. As district government leaders, night district chiefs report to their superiors and relevant municipal departments. Nightlife CEOs report directly to their district’s night district chief. This dual-track system retains Chinese administrative characteristics while introducing professional business management, and has now been promoted to 15 cities including Guangzhou and Chengdu.
Regulatory innovations
The 61 policy documents reveal four categories of policy tools. Fiscal support policies feature prominently, with 38.2 per cent of policies explicitly proposing financial support measures. Tianjin established dedicated night-time economy development funds using a ‘rewards instead of subsidies’ approach, providing percentage-based subsidies for construction and renovation of pilot districts.
Regulatory adjustment policies appear in 40.1 per cent of documents. Shanghai pioneered relaxed outdoor seating regulations, allowing ‘external seating areas’ during specified evening hours – a major breakthrough in urban management. Beijing supports 24-hour convenience stores, late-night dining establishments and 24-hour bookstores. Chengdu has gone further, allowing street-facing businesses to set up outdoor seating on sidewalks from 8 PM to 2 AM without impacting traffic flow.
Yangpu District’s Daxue Road exemplifies Shanghai’s approach. The street established a self-governance committee in 2019, bringing together government, property management, merchants and residents. Management standards have been developed and upgraded to ‘version 2.0’, adopting a ‘one road, one plan; one store, one standard’ approach. The regulations specify permitted zones and establish transparent approval processes. A self-governance committee enforces accountability through formal guidelines, including for outdoor seating and store sign installation. Violations can result in the loss of outdoor seating privileges, while serious or repeated infractions may lead to non-renewal of business leases. The 700-metre street now hosts nearly 80 speciality merchants.[4]
Public service policies provide supporting infrastructure, with 39.8 per cent of policies containing public service content. Multiple cities extended metro and bus operating hours, with Shanghai and Guangzhou metros running until after midnight on weekends. Tianjin requires designated night-time economy zones to add temporary parking spaces.
Regional characteristics
Different regions have developed distinctive policy approaches reflecting local conditions:
North China leads in policy quantity and innovation intensity, with Tianjin’s comprehensive policy system spanning municipal-level coordination to district-level implementation. Beijing focusses on brand building, with ‘Night Beijing’ becoming a nationally influential night-time economy brand.
East China demonstrates outstanding policy quality and innovation, with Shanghai’s night mayor system influencing local policies nationwide. Jiangsu and Zhejiang provinces emphasise deep integration of the night-time economy with cultural tourism, creating numerous culturally distinctive night-time consumption venues.
Western regions are starting to catch up with other areas. Xi’an leveraged its deep historical heritage to create the ‘Great Tang Never Sleeps City’ tourism brand, becoming a viral destination. Chengdu capitalises on its culinary heritage and boasts a flourishing night-time dining economy. Chongqing utilises its unique mountain scenery to promote night tourism, with three-dimensional night markets featuring platforms at different elevations that form layered night-time landscapes.
Northeast China faces economic transformation pressures and treats the night-time economy as a crucial lever for stimulating urban vitality. Jilin Province’s three policies demonstrate high regard for the night-time economy, particularly in exploring the integration of ice and snow tourism with the night-time economy.
How European companies can participate
European companies are well positioned to capitalise on China’s night-time economy by leveraging their expertise, brand reputation and unique cultural assets. Practical approaches include:
Food and beverage: European restaurant and bar concepts can capitalise on Chinese consumers’ appetite for authentic international experiences. Premium positioning and extended operating hours can differentiate offerings in a market where traditional formats dominate.
Retail and experiential commerce: European fashion, cosmetics, and lifestyle brands can help to develop night-time shopping events, pop-up experiences, and late-night retail programming that align with the peak consumption window between 7 PM and 11 PM.
Cultural and entertainment programming: European cultural institutions, entertainment companies, and event organisers can partner with Chinese venues to develop night-time cultural offerings, from late-night museum exhibitions to evening performance series. Global brands have demonstrated this potential: AB InBev successfully introduced to China Tomorrowland, the world’s premier electronic music festival, creating immersive night-time experiences that showcase European cultural exports.
Digital and delivery integration: Social media can be utilised to market night-time offerings and integrate with delivery platforms to extend reach beyond physical locations.
Urban design and lighting: European expertise in urban planning, lighting design, and public space activation is highly relevant as Chinese cities invest in night-time infrastructure and ambience. Beijing has converted air-raid shelters into underground bar streets; Chongqing has developed multi-level night markets – such projects represent partnership opportunities.
Market access considerations
Despite promising opportunities, several challenges require attention:
Regulatory complexity: Establishing a single night market requires approvals from commerce, public security, urban management, transportation, health, environmental protection, and fire safety departments, each with different standards and overlapping jurisdictions. Innovative formats like mobile food trucks and pop-up stores often cannot find applicable approval categories.
Infrastructure gaps: Public transit operating hours may be misaligned with night-time economic activity, parking facilities face supply-demand imbalances, and medical emergency resources are inadequately distributed for night-time needs.
Noise and neighbour relations: Noise issues have become a significant constraint, involving conflicts among businesses seeking vibrant atmospheres, consumers seeking entertainment, and residents requiring a quiet environment. Understanding local regulations and community expectations is essential.
Format homogenisation: Night-time economic offerings across cities show high similarity, mainly concentrated in traditional formats like barbecue restaurants and food stalls. Consumption activity is excessively concentrated between 7 PM and 11 PM. European companies offering differentiated, high-quality experiences may find competitive advantages.
Recommended actions
- Monitor policy developments: China currently lacks unified national night-time economy guidance, but this is expected to change given the government’s consumption priorities. Early engagement positions companies to benefit from forthcoming support.
- Engage with local night district chiefs and nightlife CEOs who serve as bridges between government and market – these officials are tasked explicitly with supporting night-time economy development.
- Partner with established local operators who understand regulatory requirements and community relationships.
- Develop offerings for the 7 PM to 11 PM peak window while exploring opportunities in underserved time periods.
- Leverage digital platforms for marketing and delivery integration.
Looking ahead
China’s night-time economy stands at a critical juncture, transitioning from exploratory pilots to comprehensive development. There is enormous, untapped potential alongside significant institutional, infrastructural and market challenges. Local policy systems have achieved substantial scale, though regional imbalances persist. Local innovations—particularly Shanghai’s night mayor system and outdoor seating regulations—have accumulated valuable experience for national promotion.
For European companies, the sector offers genuine opportunities, but success requires understanding local governance structures, regulatory requirements and consumer preferences. Those who invest in local partnerships and adapt their offerings to Chinese night-time consumption patterns can capture a meaningful share of this expanding market.
Yacheng Sun is professor of marketing at Tsinghua University’s School of Economics and Management.
Maggie Wenjing Liu is associate professor of marketing at Tsinghua University’s School of Economics and Management.Lesley Luyang Song is associate professor of marketing at Tsinghua University’s School of Management.
[1] Zhao, X, China Night-time Economy Industry Market Analysis Report, Zhiyan Consulting, 18th November 2024, viewed 12th January 2026, <https://www.chyxx.com/industry/1202839.html>
[2] Guidance on Promoting Night-time Economy Development in Shanghai, Ministry of Justice, 28th June 2021, viewed 12th January 2025, <https://www.moj.gov.cn/pub/sfbgw/zwgkztzl/2021nzt/20210420fdbnl_2329/fzzfjsxl/202106/t20210628_429035.html>
[3] Qianmen Street has changed, Beijing Daily, viewed 12th January 2026, <https://news.bjd.com.cn/2025/06/26/11212947.shtml>
[4] Shanghai further optimizes the management of stall establishment and improves the city’s “fireworks” to balance vitality and order, Shanghai Municipal Government, 31st May 2025, viewed 12th January 2026, <https://www.shanghai.gov.cn/nw4411/20250531/ef7317bd6c664cc7b84ef70a1bb08b17.html>
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