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Policymakers placing greater emphasis on services sector

By Zhong Nan | China Daily | Updated: 2025-07-17 10:19
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A view of a Kuaishou cross-border livestreamer at the seventh China International Import Expo in Shanghai in November. [Photo/Xinhua]

China's ongoing efforts to deepen its opening-up will position trade in services as a powerful driver of economic growth and a source of long-term competitive strength, said market watchers and business leaders.

Amid rising geo-economic fragmentation and subdued demand for goods in certain parts of the world, policymakers are placing growing emphasis on the services sector, including digital trade, finance, healthcare and tourism, to revitalize the global economy and enhance international cooperation, they said.

In contrast to goods trade, trade in services refers to the sales and delivery of intangible services such as transportation, tourism, telecommunications, advertising, education, computing and accounting.

China's trade in services recorded fast growth in the first five months of 2025, while the country's trade in this category rose 7.7 percent year-on-year to 3.25 trillion yuan ($453 billion), according to statistics released by the Ministry of Commerce in early July.

Li Jun, a researcher specializing in trade in services at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said China's services sector is not only expanding in scale, but also undergoing structural upgrading, with notable progress in high-value segments such as digital services, finance and technological innovation.

"This transformation reflects the country's broader shift toward innovation-driven growth," said Li. "By fostering a more open and rules-based services trade environment, China is not only boosting domestic competitiveness, but also contributing to global economic resilience and creating new avenues for cross-border cooperation."

With China's favorable visa-free policies fueling a surge in inbound tourism, Club Med, a global travel and lifestyle brand, is leveraging this trend to accelerate its China-based inbound operations, taking advantage of government policies to attract more international visitors.

During the May Day holiday this year, Club Med saw sales revenue in China grow by more than 15 percent compared to the same period in 2024.

"We will continue to focus on expanding our presence in the snow vacation sector by increasing the number of new ski resorts in China," said Andrew Xu, Club Med's global deputy CEO and CEO for China, adding that the group plans to open a new urban oasis-themed resort in Hangzhou, Zhejiang province, by the end of this year.

Revealing that Club Med will establish new resorts in Lingshui Li autonomous county, Hainan province, Xu said that in the second half of 2025, the group's recorded reservation business volume in the Chinese market surged more than 30 percent year-on-year.

"We are optimistic about China's growth potential and the country has become our second-largest source market today," he added.

China's trade in travel-related services soared 12.2 percent year-on-year to reach 920 billion yuan between January and May, while it recorded a 5.3 percent increase on a yearly basis in inbound travel services, according to the Ministry of Commerce.

China's continued opening-up policies are also prompting foreign technology and manufacturing companies to actively transform their business models, with many expanding into services-related businesses to enhance competitiveness and better align with the country's green and innovation-driven development agenda.

Apart from manufacturing low voltage products and building management systems in China, French industrial group Schneider Electric is deepening collaboration with 1,000 suppliers globally, including 270 based in China, by offering methodological guidance, action plans and technical support to help them achieve a 50 percent reduction in carbon emissions by 2025.

Jean-Pascal Tricoire, Schneider Electric's board chairman, said that the Belt and Road Initiative has become a key driver of global growth by fostering mutually beneficial cooperation and shared development.

As Chinese firms expand their market presence in economies participating in the BRI, Schneider Electric's operations in over 100 countries and regions offer a solid foundation for supporting their efforts to develop global partnerships, said Tricoire.

"This will enable a complementary model that merges Chinese innovation with local standards, delivering localized and sustainable solutions through our ecosystem expertise," he added.

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