Locked in a trade war with the United States and struggling with weak domestic consumption, China looks set to make a U-turn on an unlikely sector: K-pop. It was announced on April 28 that K-pop group Epex will be performing in Fuzhou, Fujian province, on May 31 — the first time an all-Korean idol group has held a concert in mainland China since 2016. On top of that, the large-scale annual Dream Concert — South Korea’s longest-running K-pop event — has reportedly been scheduled to take place on Sept. 26 at a 40,000-seat stadium in Hainan province, the Korea Entertainment Producers’ Association said on April 30. Those developments could signal an easing of China’s unofficial ban on K-pop acts on the mainland after South Korea announced the deployment of the Terminal High Altitude Air Defense missile defense system in 2016, with China saying the system was aimed at constraining China’s power in the region, among other reasons. The about-face on K-pop represents a “structural turning point” for the sector, according to Oh Jiwoo, research analyst at CGS International Securities Hong Kong. Oh told CNBC “this policy shift is part of China’s broader strategy to revitalize domestic demand amid a prolonged consumption downturn.” She noted that consumption contributed nearly 70% to China’s gross domestic product growth in 2018, but the share has dropped to below 30% in recent years, with the country’s consumer price index growth hovering near zero. “In response, the government has started promoting cultural events—including foreign pop concerts—to stimulate discretionary spending in tourism, hospitality, and local commerce,” she added. On April 25, China’s ministry of culture and tourism released a notice calling for the promotion of cultural events, including concerts and music festivals. Oh pointed out that China is South Korea’s third-largest album export market after Japan and the U.S., and the second-biggest music market in Asia, “underscoring its strategic importance despite years of restrictions.”