China's Services Trade Surpasses $1 Trillion
In 2024, China's trade in services reached a historic milestone, surpassing the $1 trillion threshold for the first time. With total imports and exports reaching 7.5 trillion yuan ($1.05 trillion), this growth represents a 14.4% year-on-year increase. In contrast to the deceleration seen in global goods trade, this surge in services trade signals China's growing importance in the global trade ecosystem.
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The Economic Shift: Services Trade Driving Growth
ONE
A pivotal factor behind this remarkable growth has been China's services sector, particularly in inbound tourism and knowledge-intensive services. The rapid expansion of the services trade not only showcases China's evolving role in global commerce but also reflects its efforts to diversify its economy away from traditional goods exports.
The travel services sector, in particular, has been the standout performer. Reaching approximately 2.05 trillion yuan in 2024, this segment saw an increase of 38.1%. This growth was propelled by a combination of policy reforms—such as the expansion of visa exemptions, the introduction of a 144-hour visa-free transit program, and enhanced flight connectivity. These changes have had a cascading effect, fostering a surge in inbound tourism and subsequently boosting China's services trade.
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TWO
Beyond tourism, China's cultural exports are driving services trade growth and reshaping global consumption patterns. The rise of Chinese digital content—especially in gaming, film, and internet literature—has been a key factor in increasing China's global competitiveness. For instance, the action role-playing game Black Myth: Wukong, which sold over 25 million copies globally in 2024, generated more than $1.1 billion in revenue. Similarly, Joy of Life 2, a Chinese TV drama, made history as the first Chinese mainland series to be released globally by Disney+, setting record ratings for a Chinese drama.
This global expansion of Chinese cultural content not only enhances the country’s position in the services trade but also provides a platform for deeper cultural exchange, fostering international engagement through digital media.
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Structural Optimization and Policy Support
THREE
The transformation of China's services trade is also driven by ongoing structural optimization. Knowledge-intensive services, including telecommunications, computing, and personal cultural entertainment, have seen significant growth. In 2024, knowledge-intensive services trade reached 2.9 trillion yuan, growing by 6.5%. This shift highlights China's strategic focus on high-value service exports, aligning with global trends in digitization and technological advancement.
To support this transformation, China has progressively aligned its services trade policies with international standards. The implementation of a nationwide negative list management system for cross-border services trade reflects China's commitment to further opening up its services sector. As China continues to integrate into high-standard trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), it is positioning itself to enhance cross-border flows of talent, capital, technology, and data.
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The Global Impact: Services Trade as a Catalyst for Economic Resilience
FOUR
China's growing services trade is not only reshaping its economic structure but also influencing the broader global trade landscape. As global goods trade faces challenges from rising protectionism and supply chain disruptions, services trade has emerged as a key driver of economic resilience. For international businesses, investors, and multinational corporations, China's expanding services sector offers numerous opportunities, particularly in financial services, digital trade, consulting, and high-end professional services.
Moreover, China's emphasis on high-standard policy reforms in services trade, including the promotion of green services and industrial digitization, is positioning the country as a global leader in the rapidly evolving services trade landscape. As these policies take shape, China's role in the international economic system will continue to evolve, offering new avenues for global trade cooperation.
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