中文
The interior view of the China National Convention Center in Beijing, capital of China, September 1, 2023. [Photo/Xinhua]
By Ruqiya Anwar
The ongoing 2023 China International Fair for Trade in Services (CIFTIS) is a global exhibition and platform for service trade. In a world where economic landscapes have been reshaped by global challenges, China's service trade has emerged as a beacon of resilience and adaptability. In the first seven months of this year, China's service trade value grew by an incredible 8.1 percent year on year, totaling 3.67 trillion yuan (about $510.6 billion), based on recent data from the Ministry of Commerce.
This remarkable growth demonstrates China's determination to open its doors to the rest of the world, as well as its growing involvement in global service trade. In this editorial, we look at the key drivers of this expansion, the changing dynamics of China's service trade, and its implications for both China and the global economy.
The data offers an elaborate overview of China's service trade. While overall growth has been strong, the nature of that growth has revealed some noteworthy characteristics. Service imports increased by 21.6 percent year on year, hitting 2.13 trillion yuan. This increase reflects China's growing appetite for international services ranging from finance and technology to education and healthcare.
The service trade balance, which stood at 589.91 billion yuan for the seven months, is one of the data's highlights. This service trade balance, rather than generating concerns, indicates China's dedication to its growth and development within the global context.
The idea of a trade balance has a distinct meaning when applied to services. It signifies China's proactive stance in seeking out and importing specialized services, expertise and experiences from the global market to meet its domestic needs. This strategy is consistent with China's commitment to fostering its economic expansion through the acquisition of valuable knowledge and services.
It shows China's commitment to fostering innovation and enhancing its capabilities. China is actively fostering an environment that encourages economic growth and transformation by proactively seeking services that might not be easily accessible locally. China is being propelled into the group of contemporary, dynamic economies thanks in large part to this strategic strategy.
It underscores China's commitment to employing knowledge and experiences across the globe, which will ultimately be beneficial in its extending growth and prosperity. It is evidence of China's innovative approach to economic development and its influence as a force for good in the world economy.
China's rise in service trade is driven not just by quantity but also by the quality and diversity of the services exchanged. Knowledge-intensive services have emerged as a key engine of growth, increasing by an outstanding 11.7 percent year on year to nearly 1.58 trillion yuan. This sector currently accounts for a significant 43.2 percent of overall service commerce in the period, a 1.4 percentage point rise from the previous year.
This shift towards knowledge-intensive services blends in well with China's broader economic transformation into a knowledge-based economy. It represents China's growing emphasis on innovation, technological transfer, and global involvement.
China can accelerate its economic development, boost its global competitiveness, and drive innovation-led growth by importing knowledge-intensive services. This benefits not only China but also the entire world by encouraging collaboration and an exchange of ideas.
Notably, tourism services have demonstrated amazing endurance in the face of the pandemic's challenges, growing at an impressive pace of 66.2 percent. During the first seven months of this year, the total cost of tourism services was 768.13 billion yuan. This outstanding result highlights both China's successful handling of the pandemic and the repressed demand for leisure and tourism activities.
Travel service exports and imports have also shown phenomenal growth, increasing by 55.8 percent and 67.0 percent annually, respectively. This underscores China's position as a top travel destination worldwide and denotes a robust resurgence in global tourism. This industry is positioned to significantly contribute to China's service trade and overall economic growth as foreign travel slowly resumes to pre-pandemic levels.
As China continues to expand its role in the global service trade landscape, it is poised to benefit not only from its economic growth but also to contribute positively to the world economy. By strengthening international collaboration, innovation and openness, China has established a course that promises mutual benefits and sustainable growth in the post-pandemic world. In this dynamic and linked era, China's expansion in service trade is a resounding testament to the country's vision and good impact on the global stage.
Ruqiya Anwar, a special commentator on current affairs for CGTN, is a PhD scholar of Media and Communication Studies in Pakistan.
