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Nation's trade in services accelerating

By Wang Keju | chinadaily.com.cn | Updated: 2025-06-08 23:41
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Driven by burgeoning inbound tourism and robust growth in the knowledge-intensive service sector, China's trade in services registered swift expansion in the first four months of the year, underscoring the country's efforts in fostering new growth drivers amid rising trade barriers, analysts said.

Although uncertainties still cloud tariff negotiations with the United States, China is committed to opening its door even wider and enhancing its global competitiveness to respond to intensifying protectionism, they added.

From January to April, China's trade in services continued to grow at a relatively fast pace, with the total import and export value reaching 2.63 trillion yuan ($366 billion), a year-on-year increase of 8.2 percent, the Ministry of Commerce said in a news release on Friday.

China's trade in knowledge-intensive services recorded a steady increase during this period, with total imports and exports reaching over 1 trillion yuan, up 5.5 percent year-on-year, the ministry said.

The export of travel services, in particular, grew 79.9 percent year-on-year during the first four months, recording the fastest growth among all subsectors, it added.

Expanding openness

The surge in the travel service sector is largely attributed to China's unilateral visa exemption for citizens of 43 countries and its 144-hour visa-free transit policy for citizens from 54 countries. These measures have fostered a more convenient climate for foreign tourists coming to China, according to experts.

"China's willingness to invite the world in demonstrates the nation's commitment to expanding openness even when certain countries practice unilateralism," said Chen Jianwei, a researcher at the Academy of China Open Economy Studies of the University of International Business and Economics in Beijing.

In addition, the country recently upgraded its instant tax refund system for foreign visitors, which, coupled with its improved payment services, makes China an appealing destination for both travel and shopping.

While the US is attempting to reshape global supply chains through tariffs, China is taking a totally different approach, Chen said.

China has reduced the minimum purchase threshold for tax refunds to 200 yuan from 500 yuan as part of the nation's broader efforts to strengthen the clout of its consumer market and, thereby, cement its position in global supply chains, he said.

"This will compel other countries and global companies to carefully weigh the costs of decoupling from China against the dividends of engaging with the Chinese market," he added.

Meng Pu, chairman of Qualcomm China, said: "Amid China's fast-growing trade in services, we not only see greater efficiency and innovative applications brought by technology, but also the tremendous potential for win-win cooperation. Technology can only unleash its maximum value within an open and collaborative ecosystem."

Top negotiators from Beijing and Washington are scheduled to hold the first meeting of the China-US economic and trade consultation mechanism during Vice-Premier He Lifeng's visit to the United Kingdom from Sunday to Friday.

The meeting will come after the two countries held economic and trade talks in May in Geneva, Switzerland, during which they agreed on a 90-day pause on triple-digit tariffs to allow further negotiations.

Zhao Jinping, vice-president of the China Association of Trade in Services, said that with the uncertain prospects of US tariffs on China's trade in goods, it is crucial for China to tap into its trade in services as a means of buffering potential headwinds.

Looking ahead, 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 go ahead with the implementation of the negative list for cross-border trade in services, he added.

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