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Services trade emerges as key engine for China's high-quality development

By: MediaOutReach

September 15, 2025 at 03:50 AM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

BEIJING, CHINA - Media OutReach Newswire - 15 September 2025 - The services trade is becoming an increasingly crucial engine for China's economic growth and has substantial potential, driven by technological advancements such as artificial intelligence (AI), according to global representatives at the ongoing 2025 China International Fair for Trade in Services (CIFTIS).

This photo taken on Sept. 10, 2025 shows an Iranian booth of the thematic exhibitions during the 2025 China International Fair for Trade in Services (CIFTIS) at Shougang Park in Beijing, capital of China.

The fair, which opened on Wednesday and will close on Sunday in Beijing, features high-level forums where government officials, industry leaders and international experts are exchanging insights on the development of the services trade.

Services represent a great opportunity for growth in China as the scale of the domestic industry is relatively small compared to similar countries, Marshall Mills, senior resident representative in China of the International Monetary Fund, said at Thursday's Forum on Development of Trade in Services.

He noted that total factor productivity growth in China's services sector has been accelerating, particularly in fields like financial services and commerce, playing a vital role in the country's continued economic development.

Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics, observed that while China's services sector now accounts for over 50 percent of GDP, it remains below the 70 to 80 percent levels typical of developed economies. "As the services sector expands, trade in services becomes a natural progression," he said.

"Trade serves as a means to promote services sector growth, while industry expansion drives trade demand. Thus, industrial development and trade development mutually reinforce each other," Tu said, adding that expanded trade in services can boost domestic supply and stimulate consumption, which is a key growth driver for China.

Recent years have witnessed rapid growth in China's services trade, fueled by the country's sustained opening-up policies. A Ministry of Commerce report released on Thursday has revealed that China's total services trade volume surpassed 1 trillion U.S. dollars for the first time in 2024, ranking second globally.

"China's trade in services has entered a stage of high-quality development," Chinese Vice Commerce Minister Sheng Qiuping said, noting that the country's services trade has maintained an average annual growth rate of 6.7 percent since 2012, 1.7 times that of its goods trade.

Digital transformation is accelerating this trend. Long Guoqiang, deputy head of the Development Research Center of the State Council, said that digitalization has transformed many services that were previously difficult to trade across borders into tradable activities, accelerating the development of the services trade across both traditional and emerging sectors.

In particular, the rapid development of AI is poised to open a new chapter for the services trade, and that is an area where China maintains competitive advantages, he said.

At CIFTIS, exhibitors are showcasing AI-powered solutions across multiple sectors, demonstrating technology's transformative impact on education, tourism, health care and sports. Chinese-made humanoid robots at the event have exhibited capabilities like delivering food, preparing coffee, playing football and boxing matches.

China's rapidly developing AI sector is empowering small and medium-sized enterprises to participate in global competition, Sheng said, noting that the proportion of knowledge-intensive services exports in China's overall export of services has increased rapidly in recent years.

Looking ahead, China will continue to expand its high-level opening-up, which will include the promotion of pilot programs in the fields of telecommunication and medicine, while steadily advancing opening-up in the education and culture sectors, according to Sheng.

"We will deepen our integration into the world market, enhance industrial synergy with other countries, and inject greater momentum into global economic prosperity through opening-up and cooperation in the services trade," he said.

Hashtag: #CIFTIS

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