China’s Service Trade Grows 4.9% in Jan-Apr 2026

China’s service trade imports and exports reached 24,853.2 billion yuan (approximately $3.43 trillion) in the first four months of 2026, growing 4.9% year-on-year, according to data released by the Ministry of Commerce. The figures, reported by CCTV, show service exports surging 15% to 9,850 billion yuan while imports edged down 0.8% to 15,003.2 billion yuan, narrowing the service trade deficit by 139.74 billion yuan compared to the same period last year.

Context: A Services Sector in Transition

The steady expansion comes amid ongoing global economic headwinds, including trade tensions and geopolitical instability. China’s service trade — the world’s second largest, having surpassed $1 trillion for the first time in 2024 — is a key pillar of the country’s strategy to become a comprehensive trade powerhouse, alongside goods trade and digital trade, as noted in a background analysis by Xinhua / Economic Reference Daily.

Key Developments: Knowledge-Intensive and Travel Services Lead Growth

Knowledge-intensive services — a high-value, high-tech segment that includes intellectual property royalties and personal cultural services — emerged as a standout performer. Trade in this category reached 11,041.8 billion yuan, up 5.1%, accounting for 44.4% of total service trade. Exports of knowledge-intensive services grew 11.7%, with personal culture and entertainment services leading at 39.5% growth and intellectual property royalties rising 20.8%.

Travel service exports also posted remarkable gains, climbing 30.4% to 147.15 billion yuan — the fastest growth among the top five service export sectors. This surge is attributed to China’s visa facilitation policies implemented over the past year, which have attracted more international visitors and boosted inbound tourism consumption. On the import side, transport services grew 24.9% to 316.45 billion yuan, the fastest among top import categories.

According to China Youth Daily citing Xinhua News Agency, the data reflects continued structural improvement in China’s trade composition.

Analysis: Structural Shift Toward Higher Value-Added Services

Zheng Wei, Associate Researcher at the China Service Outsourcing Research Center, described the performance as demonstrating a trend of “quantitative and qualitative improvement.” In an interview with Economic Reference Daily, Zheng noted that against the backdrop of global economic downturn and increasing international turmoil, this achievement underscores the tangible results of China’s policies in expanding service sector opening-up, optimizing the business environment, and promoting innovation.

On knowledge-intensive services, Zheng observed that this sector’s steady growth — accounting for a stable share of around 38% of the overall total — reflects China’s service trade gradually moving up the global value chain to mid-to-high-end segments. “This sector has high added value and high technological content,” he said.

The narrowing of the service trade deficit is particularly significant. Zheng attributed this primarily to the substantial growth in service exports, reflecting enhanced competitiveness. The deficit narrowed from 7,663.7 billion yuan in the January-October 2025 period (down 2,693.9 billion year-on-year) to 5,153.2 billion yuan in the first four months of 2026.

What’s Next: Sustaining Momentum Amid Global Uncertainty

The data raises important questions about the trajectory of China’s service trade for the remainder of 2026. Key factors to watch include whether knowledge-intensive exports can maintain their double-digit growth rate, how ongoing global trade tensions — particularly US tariff policies — may impact service trade flows, and whether the decline in service imports signals broader moderation in domestic demand.

China’s economic transformation from a manufacturing-dominated model toward a service-based economy continues to gain traction. The strong performance of high-value service exports, particularly in personal culture, entertainment, and intellectual property, suggests that the country is successfully moving up the global value chain. However, sustaining this momentum will depend on the resilience of global demand and the effectiveness of continued policy support for service sector opening-up.

As Zheng Wei concluded, the rapid growth in travel services — driven by visa facilitation policies — demonstrates how targeted reforms can unlock significant economic potential. Whether similar policy levers can be applied to other service sub-sectors will be a key question for policymakers in the months ahead.