Services emerging as key driver for trade growth

China's trade in services saw rapid expansion in the first half, officials, experts and business executives said, pointing to a shift toward a foreign trade structure in which services are an increasingly important source of growth.

Buoyed by the sector's robust expansion, the China International Fair for Trade in Services is set to further cement its role as a two-way gateway, accelerating the flow of global innovation into China's vast market while helping Chinese service providers make further inroads in markets overseas.

Opening in Beijing on Wednesday, the five-day fair is expected to draw growing international attention, underscoring China's commitment to opening its services sector wider and injecting much-needed stability and certainty into global trade amid mounting protectionism and heightened economic uncertainty, they added.

In contrast to goods trade, which involves physical products moving across borders, services trade covers transactions in intangible offerings ranging from transportation and tourism to telecommunications, advertising, education, computing and accounting.

In the first half, China's imports and exports of services totaled 3.78 trillion yuan ($556.6 billion), up 8.3 percent year-on-year, said the Ministry of Commerce.

That was nearly 50 percent higher than in the same period a decade earlier, when the total stood at 2.53 trillion yuan. Growth has gathered pace in recent years, with annual two-way services trade topping $1 trillion for the first time in 2024, the ministry said.

"China's services trade is expanding rapidly and becoming more competitive. It has emerged as a particularly resilient source of growth in the country's opening-up drive," said Wang Peng, a researcher at the Beijing Academy of Social Sciences.

That growing strength is drawing businesses from around the world, with a strong international presence expected at the event.

"This year's fair will bring together some 90 countries and international organizations, with more than 1,800 companies set to exhibit on-site," Vice-Minister of Commerce Yan Dong said at a recent news conference in Beijing.

Falkor, a Norway-based industrial intelligence provider serving the global energy sector, will make its fifth appearance at CIFTIS this year, showcasing its solutions, real-world applications and the results of its work with industry partners, said Wu Haifeng, senior vice-president of Falkor.

Norway will serve as the guest country of honor at this year's fair. Wu, who is also vice-chairman of the Norwegian Business Association China, said Norwegian businesses hope to use the occasion to forge new partnerships in China.

At last year's fair, the company formed a strategic partnership with China Oil HBP Science & Technology Co. The two sides have since been working to roll out an industrial digital platform, Wu said.

"Over the next five years, we will continue to increase our investment in China, deepen local partnerships, and use industrial intelligence to boost operational performance and advance the energy sector's green transition," Wu said.

Meanwhile, this year's fair will see more than 90 companies and institutions unveil new technologies, products and services spanning information and communications technology, fintech and digital healthcare, with some set for global debuts or their first showings in China, Yan added.

Johnson & Johnson MedTech, the medical technology arm of US healthcare giant Johnson & Johnson, will bring more than 60 products to the fair. About one-third will make their CIFTIS debut, said Edward Zhou, president of Johnson& Johnson MedTech China.

"We have been part of CIFTIS for several years now, and what sets this platform apart is its ability to turn conversations into action. It is more than a showcase — it is a catalyst," Zhou said.

Impella, a minimally invasive heart pump featured at last year's fair, has since secured temporary import approval under a program for innovative medical devices needed in clinical care and entered clinical use at leading cardiac centers in Beijing, he said, adding that "what we see in China's services trade is a clear shift toward quality-driven growth".

China's services exports jumped 17.6 percent year