“China Service” Highlighted as Services Trade Grows 7.4%, Outpacing Goods

Chongqing - The 2026 government work report delivered on March 5 during the Two Sessions introduced the "China Service" as a national policy priority for the first time.

In 2025, China's total services trade reached 8.08 trillion yuan (about 1.12 trillion U.S. dollars), up 7.4 percent year-on-year, outpacing growth in goods trade. The services sector contributed 61.4 percent to economic growth, solidifying its position as the cornerstone of the national economy. Zheng Shanjie, chairman of the National Development and Reform Commission, said the sector is expected to exceed 100 trillion yuan during the 15th Five-Year Plan period.

Knowledge-intensive services trade reached 3.09 trillion yuan in 2025, up 6.6 percent. Telecommunications, computer, and information services totaled 1.1 trillion yuan, up 10.4 percent, generating a surplus of 576 billion yuan. 

Travel service exports surged 49.5 percent to 2.2 trillion yuan. During the 2026 Spring Festival holiday, 1.31 million foreigners entered or exited China, up 21.8 percent from a year earlier.

In 2025, Chongqing ranked seventh among China's most popular cities for inbound tourism. The city handled over 760,000 inbound foreign passengers in 2025, a 30% increase year-on-year. Most arrived from Malaysia, Thailand, Singapore, Indonesia, and South Korea, with visitors from ASEAN nations accounting for 72% of the total. As travel services already accounted for 31% of the city's total service trade from January to July 2025, there is potential for growth.

Despite this surge, inbound tourism revenue accounts for less than 0.5 percent of GDP, according to the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. By comparison, Thailand's share exceeds 10 percent, while European countries range from 1 to 3 percent. Closing this gap could unlock 1 trillion to 3 trillion yuan in potential consumption.

Services trade still has significant room to grow. Li Jun, director of the Institute of International Service Trade at the academy, suggests leveraging China's global manufacturing footprint to drive coordinated expansion of logistics, digital technology, and professional services. 

The integration of manufacturing and services is reshaping industries. For example, Chint Group, an electrical appliances and photovoltaic company, has moved beyond hardware production to offer integrated solutions that combine equipment, software, and ongoing services. This trend is particularly evident in technology services.

Chongqing Haifu Medical Technology Co., Ltd., exemplifies Chongqing's manufacturing-services integration. Haifu has exported to 35+ countries and treating 340,000+ patients. Every time it enters a new country, local doctors come to Chongqing for training. In 2025, HaiFu completed first 5g-powered remote-focused ultrasound surgery for a patient in Kenya by doctors in Chongqing.

Emerging technologies are redefining the boundaries of services. Zheng said AI-related industries are expected to exceed 10 trillion yuan by the end of the 15th Five-Year Plan period. The rapid growth of AI, data, and intelligent computing services is emerging as a key driver of new growth.