China will double down on the development of trade and consumption of services as they are recognized as crucial levers for stabilizing foreign trade and expanding domestic demand, the State Council, the country's Cabinet, said on Friday.
China will implement the negative list for cross-border trade in services across the board and align with international rules, as well as roll out new steps to further open up key sectors such as telecommunications, education, culture, healthcare and finance, according the State Council executive meeting chaired by Premier Li Qiang.
It was stressed at the meeting that dedicated efforts will be made to promote the expansion of services exports, help domestic service providers expand into overseas markets and enhance their offerings for foreign customers.
China's trade in services experienced rapid growth last year, driven by a surge in inbound tourism and robust performance in knowledge-intensive sectors. For the first time, the total value of services trade surpassed the $1 trillion mark.
According to data released by the Ministry of Commerce in late January, China's services import and export value reached a record 7.5 trillion yuan ($1.03 trillion) in 2024, registering a year-on-year increase of 14.4 percent.
In particular, the travel services sector has emerged as the fastest-growing segment, with total imports and exports coming in at about 2.05 trillion yuan in 2024, expanding 38.1 percent year-on-year, the ministry said.
Subdued global demand and escalating protectionism have created headwinds for China's trade in goods, said Cui Fan, a professor of international trade at the University of International Business and Economics.
In response, the government should actively promote the development of services trade as a means to offset these challenges and diversify the country's trading portfolio, Cui said.
As the country has put boosting domestic demand high on its work agenda, the Friday meeting also placed a strong emphasis on scaling up services consumption.
Policymakers will leverage a comprehensive suite of fiscal, tax and financial policies and foster a more enabling environment for both domestic and foreign businesses in order to increase the supply of high-quality services and better cater to the diverse needs of its population, it was stated at the meeting.
In 2024, retail sales of services jumped 6.2 percent year-on-year, 3 percentage points faster than retail sales of consumer goods, data from the National Bureau of Statistics showed.
Meanwhile, per capita household services consumption expenditure increased 7.4 percent year-on-year, accounting for 46.1 percent of total per capita consumer spending — a rise of 0.9 percentage point compared to the previous year, according to the data.
