China’s annual trade in services has exceeded $1 trillion for the first time, highlighting the immense growth potential of the nation’s service sector. According to the latest data from the Ministry of Commerce (MOFCOM), China’s services import and export value reached a record-high of 7.5 trillion yuan (approximately $1.05 trillion) in 2022, marking a 14.4% increase year-on-year.
Exports grew by 18.2%, while imports expanded by 11.8%, signaling robust development in the sector. Li Jun, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM, noted that driven by global trends of digitization, smart technology advancement, and green development, China’s trade in services not only grew in scale but also optimized its structure and enhanced international competitiveness in 2022.
Li highlighted that the relaxation and optimization of China’s visa-free transit policy played a significant role in boosting inbound tourism over the past year. The new policy has been widely welcomed, sparking a rise in “China Travel,” a popular hashtag on social media where travelers share their experiences in the Chinese mainland. Increasing numbers of international tourists are being drawn by the country’s cultural landmarks, natural beauty, and vibrant city life.
“‘China Travel’ is booming rapidly, and this growth is expected to boost the country’s services trade further, while helping to drive the global travel industry toward continued recovery and prosperity,” Li said.
China’s digital cultural platforms and content have also been gaining significant traction overseas. The popularity of Chinese video games like Black Myth: Wukong, the distribution of high-quality Chinese films and TV dramas on overseas streaming platforms such as Netflix and YouTube, and the growing influence of Chinese internet literature among international readers all contribute to this trend, Li noted.
In August last year, the Chinese government released a guideline on promoting the high-quality development of trade in services through high-standard opening-up. The document offered robust policy support for the sector’s development. Li called for more efforts to advance opening-up, innovation, and international cooperation in services trade.
Noting that China established a nationwide negative list management system for cross-border trade in services last year, Li suggested that the level of institutional opening-up should be continuously improved, the negative list gradually shortened as appropriate, and active alignment with high-standard international economic and trade rules pursued.
He urged the swift launch of national demonstration zones for the innovative development of trade in services. To facilitate innovation, Li called for unlocking the potential of industrial digitization and digital transformation, supporting professional organizations in finance, consulting, design, and certification to enhance their ability to provide international services, and accelerating the development of green services.
Bilateral, multilateral, and regional collaboration in digital trade and trade in services should be expanded, Li said. He suggested that the role of major exhibition platforms should continue to be leveraged, and that international services trade cooperation parks should be developed.
