Summary of Key Points
Service trade reflects the competitiveness of China's service industry and serves as a crucial driver of economic growth. In the past few years, particularly during the 14th Five-Year Plan period, China's service trade volume has exceeded one trillion US dollars, and it continued to grow in the first half of this year (with a total of 3.8 trillion yuan and exports increasing by 17.6%). Travel services and productive services have been the main drivers of this growth. Looking ahead to the 15th Five-Year Plan, the Ministry of Commerce plans to promote the innovative development of service trade by fostering new growth drivers, expanding international markets, and providing policy support. The 2026 Service Trade Fair will serve as the inaugural national-level event of this new phase, showcasing the “China Service” brand and deepening international cooperation.
Detailed Analysis
1. Service Trade in the First Half of the Year: Exports Outperformed the Overall Growth, with Travel Services Being a Major Driver
In the first half of the year, China's service trade totaled 3.8 trillion yuan, a year-on-year increase of 8.3%, with exports growing by 17.6%—this rate was much faster than the overall trade growth and became the main driver of foreign trade expansion. The most notable aspect was the performance of travel services: relaxed visa policies for inbound visitors, improved tax refund procedures for outbound travelers, and smoother payment processes all contributed to the surge in “China tourism” and “China shopping.” Data showed that 22.914 million foreign visitors entered China (a 20.4% increase), driving travel service exports to 229.2 billion yuan, a year-on-year increase of 31.1% (even though the figures were already high last year, they continued to rise this year). In short, foreign visitors coming to China for tourism and shopping directly boosted service exports.
2. Productive Services Play a Key Role, with Enhanced Competitiveness in High-End Services
What are productive services? They refer to services provided to factories and enterprises, such as research and development, financial lending, transportation and logistics, and intellectual property protection. In the first half of the year, exports of these services grew particularly rapidly: intellectual property fees increased by 44.3%, financial services by 25.9%, and transportation services by 25.4%. Moreover, the export share of these “knowledge-intensive” services has reached 53.5% (up 3 percentage points from the end of 2025). This indicates that China's service industry is moving away from being labor-intensive (such as catering and cleaning) towards a more technology- and knowledge-intensive model, with a deeper integration with the manufacturing sector. As factories become more sophisticated, the supporting services also improve.
3. Positive Developments in the Second Half of the Year: Fostering New Growth Drivers for the 15th Five-Year Plan
The Vice Minister of Commerce mentioned several positive developments for the second half of the year:
1. The potential of travel services has not yet been fully realized (e.g., more countries may introduce visa exemptions, making inbound consumption more convenient);
2. High-value-added services (such as intellectual property and finance) are expected to continue growing;
3. Policy support will remain in place.
For the 15th Five-Year Plan, the focus will be on developing new growth drivers:
- Leveraging the strengths of the manufacturing industry to promote the export of services related to research and development, testing, and maintenance;
- Expanding professional services (such as finance, law, and accounting) to international markets;
- Promoting Chinese cultural services like traditional medicine, cuisine, and the Chinese language;
- Empowering service trade with technologies like artificial intelligence and cloud computing (e.g., telemedicine and online education).
4. Expanding International Markets to Globalize “China Service”
To expand service trade, China aims to cooperate with more countries. The Ministry of Commerce plans to:
- Utilize multilateral (e.g., WTO), bilateral (e.g., with individual countries), and regional (e.g., RCEP) platforms to establish stable cooperation mechanisms with key partners (e.g., Europe, America, ASEAN);
- Sign more service trade agreements to expand cooperation areas (e.g., allowing Chinese financial institutions to operate locally);
- Improve domestic and international service systems to help Chinese enterprises enter foreign markets (e.g., providing market information and legal support). In other words, the goal is to create opportunities for Chinese service companies to compete globally and secure more orders.
5. The 2026 Service Trade Fair: The Launch Event for the 15th Five-Year Plan
The 2026 Service Trade Fair will be the first national-level service trade event of the 15th Five-Year Plan, held on September 9th at the Shougang Park in Beijing. It will feature:
- A large scale, with participation from 90 countries, regions, and international organizations, and over 1,800 companies (including 456 Fortune Global 500 companies or industry leaders);
- A new “China Service” exhibition area to showcase China’s high-quality service brands;
- A platform for businesses to find customers and negotiate partnerships, as well as for China to learn from international best practices.
Conclusion
China’s service trade is shifting from focusing on volume growth to improving quality. The success of travel services and the rise of high-end services demonstrate the increasing competitiveness of China’s service industry. In the coming years, with policy support, technological advancements, and deeper international cooperation, “China Service” is set to play a more significant role in driving economic growth. Events like the Service Trade Fair will serve as important platforms to showcase China’s services and connect with global markets.