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Services trade seen on global ascent

Total value likely broke through $1 trln threshold last year for first time

By WANG KEJU | CHINA DAILY | Updated: 2025-02-05 07:24
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Foreign tourists arrive at Sanya Phoenix International Airport, embarking on their journey on Hainan island on May 10. WANG CHENGLONG/FOR CHINA DAILY

China's trade in services, buoyed by burgeoning inbound tourism and robust growth in knowledge-intensive services, registered swift expansion last year, with the total value breaking through the $1 trillion threshold for the first time, analysts said.

China will further align its services trade rules and standards with international frameworks going forward — coupled with the existing negative list for cross-border trade in services — to foster greater openness in the sector and enhance its global competitiveness in the face of tepid global goods trade and rising protectionism, they added.

China's services import and export value stood at a record 7.5 trillion yuan ($1.05 trillion) in 2024, representing a 14.4 percent year-on-year expansion, said the Ministry of Commerce in late January.

In particular, the travel services sector has emerged as the fastest-growing segment, with total imports and exports reaching about 2.05 trillion yuan in 2024, expanding 38.1 percent year-on-year, the ministry said.

"The expanded unilateral visa exemption access, 144-hour visa-free transit policy, increased flight routes, and easier payment services have established a more convenient and appealing climate for foreign visitors, which is crucial for reinvigorating inbound tourism," said Zhao Jinping, vice-president of the China Association of Trade in Services.

These multifaceted initiatives have catalyzed the growing popularity of the "China Travel" trend on social media, where a growing number of foreign tourists share their experiences exploring the country's cultural landmarks, natural wonders and vibrant cityscapes through the hashtag.

The increasing influx of foreign tourists, in turn, has helped the country continuously optimize and diversify its product offerings, as well as improve its services standards, ultimately contributing to the overall growth and competitiveness of China's services trade sector, Zhao said.

Moreover, China's cultural and entertainment services, highlighted by gaming, films and TV series, have resonated widely across the globe, which have enabled the country to capitalize on the rising worldwide demand for digital cultural content, said Song Siyuan, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

The Chinese action role-playing game Black Myth: Wukong, which was released in August, has sold over 25 million copies worldwide on gaming platform Steam as of December 2024, generating over $1.1 billion in revenue, said VG Insights, a video game market research platform.

The Joy of Life 2, a sequel to its successful predecessor, has made history as the first Chinese mainland TV series to be prepurchased and simultaneously released globally by Disney through its streaming platform, Disney+. The series has become the highest-rated Chinese mainland drama ever on the Disney+.

China's unique strengths in cultural services are set to continue growing, which will not only bolster the international competitiveness of the country's services trade, but also foster greater cultural exchanges globally, thereby rejuvenating the overall development of global services trade, Song added.

Due to the uncertainty clouding China's goods trade prospects this year due to subdued global demand and escalating protectionism, the potential of the country's trade in services should be fully leveraged to better facilitate trading structure optimization, experts said.

China will push for the high-standard opening-up of its services trade by actively aligning with international high-standard economic and trade rules, and push ahead the implementation of the negative list for cross-border trade in services, said Cui Fan, a professor at the University of International Business and Economics.

The country will advance its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, to facilitate the cross-border flow of various factors, such as talent, capital, technology and data, Cui said.

China needs to capitalize on the trends of digitalization, intelligent technology and green development in the services trade sector to further climb up the value chain and cultivate new growth drivers, Cui said.

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