ECONOMY

Charts of the Day: China’s First-Half Services Trade Hits 10-Year High

Published: Aug. 5, 2025 8:06 p.m. GMT+8

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China’s services trade reached nearly 3.9 trillion yuan ($542 billion) in the first half of the year, as the country ramps up its focus on the sector to soften the impact of U.S. tariffs.

That represents an 8% year-on-year increase and the highest figure for the January-to-June period since records began to be published in 2016.

Services trade was buoyed by a 12.3% expansion in travel services, the largest single contributor, according to figures published Monday by the Ministry of Commerce.

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China’s services trade reached a record 3.9 trillion yuan ($542 billion) in the first half of 2024, up 8% year-on-year, led by a 12.3% rise in travel services.
Services exports rose 15% to 1.7 trillion yuan; imports grew 3.2%; the trade deficit narrowed to 511 billion yuan.
Services trade remains just 5.3% of China’s GDP, far below the EU’s 27.8% and the U.S. level, with a continued deficit mainly with the U.S.

AI generated, for reference only

What Happened When

2024：: Goods trade represented about one-third of China’s GDP and services trade accounted for around 5.3% of China’s GDP.

August 2024：: The State Council issued guidelines on promoting the development of trade in services through enhanced opening-up.

January 2025：: Zhang Yan wrote an article emphasizing that China’s services trade remains in deficit and faces structural issues.

February 2025：: Liu Jinsong wrote an article stating that measures from the State Council's August 2024 guidelines were important for responding to geopolitical shocks and trade protectionism.

January to June 2025：: China’s services trade reached nearly 3.9 trillion yuan ($542 billion), an 8% year-on-year increase and the highest figure for the January-to-June period since records began in 2016.

January to June 2025：: Travel services expanded by 12.3%, the largest contributor to services trade in the first half of 2025.

January to June 2025：: Trade in knowledge-intensive services grew 6% year-on-year to 1.5 trillion yuan.

January to June 2025：: Services exports jumped 15% to around 1.7 trillion yuan, while imports increased 3.2%, and the trade deficit narrowed by around 152 billion yuan to reach 511 billion yuan.

April 9, 2025：: The State Council published a white paper stating the U.S. is the largest source of China’s service trade deficit, coinciding with the effect of U.S. President Donald Trump’s 'reciprocal tariffs.'

By 2025：: More foreign visitors headed to China due to continued relaxation of visa policies, including expanded visa-free transit and visa-on-arrival rules.