China's Service Exports Surge 17.6% in First Half, Global Footprint Expands

Deep News
Yesterday

Data from the Ministry of Commerce reveals that China's total service trade import and export value reached 3.77975 trillion yuan in the first half of this year, marking an 8.3% year-on-year increase. Service exports specifically hit 1.5047 trillion yuan, up 17.6% from the same period last year, while the service trade deficit narrowed to 770.35 billion yuan, a reduction of 161.42 billion yuan compared to the previous year. These figures reflect a profound shift in global trade dynamics, with service trade and cooperation emerging as a new growth engine for world commerce. They also highlight the enhanced quality and efficiency of China's service sector, which saw its added value climb 5.2% year-on-year in the first half, accounting for 59.5% of GDP and solidifying its position as the nation's largest industry.

Travel service exports demonstrated particularly strong momentum, reaching 229.2 billion yuan in the first half with a remarkable 31.1% year-on-year growth rate, the fastest among the top five service export categories. Travel services encompass tourism, education abroad, and medical care, with all spending by inbound visitors on accommodation, dining, transportation, sightseeing, shopping, and entertainment counted as travel service exports. The ongoing optimization of policies such as visa-free entry and departure tax refunds has kept "China Travel" and "China Shopping" vibrant. Starting July 1, the national "small-amount spot check system" for departure tax refunds was implemented, randomly inspecting refund applications under 10,000 yuan instead of verifying each item physically. Shenzhen's Luohu Port and airport have deployed self-service tax refund kiosks supporting 13 languages, completing refund procedures in as little as two to three minutes. In the first month of the new policy, Shenzhen Customs processed 13,000 departure tax refund verification transactions totaling 170 million yuan in application amounts, surging 2.2 times and 94.1% year-on-year respectively.

According to customs officials in Shenzhen, overseas visitors are diversifying their purchases beyond traditional souvenirs like tea and silk to include domestic digital products, apparel, and cultural merchandise. The "China Travel" trend has also expanded geographically, with foreign tourists venturing beyond first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen to lesser-known destinations. Data from Qunar Travel shows that inbound flight destinations purchased by international tourists covered 160 domestic cities in the first half, from Heihe near the China-Russia border in the north to Sanya on the tropical coast in the south, from Jiamusi in the east to Kashgar at the foot of the Kunlun Mountains in the west, adding 20 new cities compared to last year. The average length of stay for inbound tourists has also extended, with Tujia Homestay data indicating that foreign guests stayed in accommodations across 330 Chinese cities during the first half, averaging 2.8 days per stay, a 10% increase year-on-year. During the summer period, this average rose to 4.7 days.

"Many foreign tourists now want to explore China's smaller cities, communities, and villages, getting to know hosts and local life through homestays, spending more time to experience a more authentic and diverse China," said Hu Yang, senior vice president of Tujia Homestay. The appeal of China was recently amplified by Elon Musk, CEO of Tesla, who posted on social media, "China is amazing. I highly recommend everyone to go see it." His mother, Maye Musk, echoed the sentiment, noting that "every city in China has its unique charm." Inbound tourism is increasingly integrating with consumption and cultural scenarios, becoming a new pillar of service trade growth.

Knowledge-intensive service exports represent another highlight, reaching 805.67 billion yuan in the first half with a 12.8% year-on-year increase, accounting for 53.5% of total service exports. XtalPi, a pioneer in AI-driven drug discovery, has accelerated its global expansion by delivering intelligent and automated robotics laboratories for drug discovery and process optimization to JW Pharmaceutical, a leading South Korean pharma company. The company has also achieved key progress in strategic partnerships with innovative US biopharmaceutical firms and secured an AI drug discovery collaboration exceeding 400 million US dollars with an internationally renowned pharmaceutical company. "We transform our proprietary AI algorithms, tools, processes, and automated experimentation capabilities into standardized, deliverable solutions for pharmaceutical and materials R&D, accumulating scarce high-quality data and industrial implementation experience while serving global clients, forming a virtuous cycle of technology export, global validation, and capability iteration," explained Zhang Peiyu, chief scientific officer at XtalPi. The company operates one of the world's largest "AI + chemistry robot" clusters, serving multiple top-20 global pharmaceutical companies, collecting high-quality data 50 times more efficiently than traditional laboratories and accelerating clinical translation of innovative drug projects.

The rise of AI and other new technologies is shifting Chinese enterprises from exporting technology products to exporting technology service capabilities. A notable new trend is "token export," where tokens—fundamental units for AI processing and information generation, representing digitized output from computing power—are packaged as standardized interfaces by Chinese firms. Overseas clients can access these services without building their own computing infrastructure. This lightweight, efficient model is gaining traction among international businesses. In fields such as programming, video creation, interactive entertainment, and AI-native gaming, many overseas startups are adopting Alibaba's Qwen large model as their technological foundation, with its model capabilities, cost advantages, and mature cloud service ecosystem building brand trust within the global developer community.

The growth in service exports reflects the rising recognition of the "Service in China" brand, with Chinese service brands accelerating their overseas market expansion and introducing their consumption concepts and cultural elements to global audiences. The journey of tea beverage brands exemplifies this internationalization trend. Mixue Ice Cream & Tea has introduced acai ice cream in Brazil, multiple sugar level options in the United States, and tropical flavors tailored to Southeast Asian tastes, operating under a "global standards + regional customization" model that respects local cultures. The brand has opened over 4,000 stores across Indonesia, Vietnam, Malaysia, Thailand, and other Southeast Asian countries. Chagee focuses more on space creation and scenario expansion, opening pet-friendly stores in areas of the Philippines known for such facilities and designing its Gangnam flagship store in Seoul with softer fabrics and greenery to create a "serene oasis" for urban customers.

The approach to brand globalization is evolving from product innovation to scenario extension, with companies not only pursuing market coverage but also building emotional connections with local consumers. Traditional services are also enhancing their quality and efficiency. In April, a pilot program for integrated development of traditional Chinese medicine (TCM) service consumption and service trade was launched, covering 18 regions including Beijing, Tianjin, and Hulunbuir in Inner Mongolia. Over the next three years, these pilot areas will explore innovations in TCM cultural exchange, TCM tourism route promotion, wellness services, and dietary therapy, catering to the diverse needs of the international wellness market, creating new consumption scenarios, and developing a batch of renowned international TCM service brands.

From the growth in travel services to the enhancement of knowledge-intensive services and the accelerated global expansion of Chinese brands, the data paints a clear picture of China's service trade transformation and upgrading. As the service sector continues to open up, Chinese services are poised to participate in global division of labor in more diverse forms, continuously activating new development momentum.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10