China Posts Strong Year-on-year Gains In Service Trade As New Growth Engines Such As Technology Finance And Intellectual Property Begin To Dominate The Export Landscape

China recorded strong year-on-year growth in its service trade during the first half of the year, reaching a total of 3.89 trillion yuan, as the country’s export landscape continues to evolve. This growth was fueled by a sharp 15 percent rise in service exports, led by new economic engines such as technology, finance, and intellectual property. These high-value, knowledge-intensive sectors are rapidly replacing traditional service categories, reflecting China’s strategic shift toward innovation-driven trade and a more resilient, modern economy that emphasizes digital capabilities and global competitiveness.

BEIJING — China’s service trade posted solid growth during the first half of the year, with combined imports and exports reaching 3.89 trillion yuan (approximately \$544.9 billion). This marked an 8 percent year-on-year increase, reflecting the country’s continued shift toward innovation-led development and higher-value economic activities.

As China works to restructure its economy away from traditional manufacturing and low-end exports, the service trade has emerged as a powerful engine of growth. In the January–June period, service exports soared by 15 percent, reaching 1.69 trillion yuan. Imports also increased, albeit at a slower pace, rising by 3.2 percent to 2.2 trillion yuan. This difference in growth rates contributed to a notable reduction in China’s service trade deficit, which narrowed by 152.2 billion yuan compared to the same period last year.

The steady rise in service trade indicates resilience and evolving competitiveness within China’s broader trade portfolio, especially as global economic conditions remain complex and unpredictable. China continues to strengthen its position in the global service economy, particularly in sectors that require strong intellectual capital and technological capability.

One of the main highlights in the report was the continued expansion in knowledge-intensive services. Total trade in this area—covering services such as finance, telecommunications, insurance, intellectual property rights, and information technology—rose to 1.5 trillion yuan in the first half of the year. This represented a 6 percent year-on-year increase, underscoring China’s commitment to developing high-value service sectors that align with its long-term economic goals.

Knowledge-intensive service exports showed robust performance, benefiting from China’s growing investments in digital infrastructure, research and development, and enterprise transformation. This segment’s growth reflects the nation’s increasing global presence in services that rely heavily on innovation, expertise, and technology. Such growth not only supports domestic employment and enterprise competitiveness but also enhances China’s role as a provider of sophisticated services in the global marketplace.

In recent years, China has accelerated the development of its service sector through policy support, pilot programs, and international cooperation. These efforts have included the expansion of service trade demonstration zones, relaxed market access in selected areas, and support for cross-border digital trade. As a result, service-oriented businesses have found greater opportunities to scale, innovate, and explore new markets—both domestically and internationally.

Digital trade has become a critical component of China’s service economy. The integration of technologies such as artificial intelligence, cloud computing, big data, and blockchain into service delivery is reshaping how trade flows across borders. China’s continued digital transformation allows service providers to deliver faster, more efficient, and more customized solutions to clients around the world, making its services more competitive on a global scale.

China’s policy framework also plays a vital role in supporting the growth of service trade. Recent initiatives have promoted transparency, improved the business environment, and created more channels for service sector investment. By opening up more sectors to foreign participation, China aims to attract knowledge-based capital and deepen its integration with global value chains.

The rising demand for professional, technical, and creative services has further stimulated the domestic market. Education, healthcare, tourism, financial services, legal consulting, and cultural exports have all seen consistent improvement, signaling strong domestic demand for service-based solutions. The transformation of urban lifestyles, coupled with increased consumption of premium services, is reshaping the economic landscape and contributing to the sustained momentum in this sector.

Service trade also serves as a stabilizing force in China’s trade composition. Unlike goods trade, which is more vulnerable to supply chain disruptions, tariffs, and logistics constraints, service trade relies more heavily on human capital, digital infrastructure, and intellectual property. This makes it more flexible and resilient in uncertain international environments.

As global economies grapple with challenges ranging from inflationary pressures to geopolitical tensions, China’s service trade performance stands out as a model of stability and forward-looking economic strategy. The ongoing growth reflects deeper structural adjustments that aim to balance innovation, consumption, and competitiveness.

Looking ahead, China is expected to maintain its focus on expanding high-quality service exports, fostering cross-border e-commerce, and building a more open and efficient service trade system. By leveraging both domestic reforms and international cooperation, China is positioning its service economy for long-term success.

China’s service trade saw strong year-on-year growth driven by a 15 percent surge in exports, as emerging sectors like technology, finance, and intellectual property increasingly dominate the export landscape, reflecting the country’s shift toward an innovation-led economy.

In conclusion, the first half of the year has highlighted China’s growing strength in service trade, with significant gains in knowledge-intensive industries and digital services. The narrowing deficit, rising exports, and strong domestic demand all point to a positive trajectory for the remainder of the year. As China continues to pivot toward services and technology, its economy becomes more resilient, diverse, and integrated with global trends.

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