Services emerging as key driver for trade growth

Yan said the policy push would gather pace in the second half as measures to expand and upgrade the services sector and build national demonstration zones for the innovative development of trade in services take effect.

A State Council report submitted to the Standing Committee of the National People's Congress for review in late August also called for expanding trade in services and promoting more balanced trade in the second half.

"China's trade in services is expected to remain on a positive trajectory this year, with services exports continuing to grow strongly," Yan said.

To further strengthen the competitiveness of Chinese services in foreign markets, this year's fair will, for the first time, feature a promotion and roadshow zone for overseas-expansion services, said Tang Wenhong, vice-mayor of Beijing, at the news conference.

Stronger exports have also helped narrow China's services trade deficit. The gap stood at 770.35 billion yuan in the first half, 161.42 billion yuan less than a year earlier, official figures showed.

Yet experts said the remaining gap points to room for the country to strengthen its competitiveness in high-value services.

Bai pointed to market access barriers, regional imbalances and gaps in domestic supply.

Trade in services remains concentrated in eastern China, with central and western regions playing a smaller role. Domestic supply remains weak in some knowledge-intensive areas, particularly intellectual property-related services, he said.

Bai called for closer alignment with international rules on digital services trade and sustained policy support for inbound tourism.

"China needs to make better use of CIFTIS, build stronger capabilities in knowledge-intensive services and move faster on institutional opening-up," he said.

The ministry said China will move faster to develop national demonstration zones for the innovative development of trade in services. The country will also steadily broaden market access and open up more areas of the services sector, while improving the negative-list system for cross-border trade in services.

The measures are aimed at removing barriers and creating a more open, transparent and predictable market environment for domestic and foreign businesses.

Zhou from the academy said the deficit should not be viewed in isolation.

While an excessively large gap could make it harder to build strong industry clusters and sharpen competitiveness, imports can bring in the expertise and technology needed for economic upgrading, he said.

As China's domestic capabilities strengthen, services exports are also rising, Zhou said, adding: "China should expand services imports and exports in tandem and tap global expertise and resources to add momentum to growth. That would make the economy more knowledge — and technology-intensive and support high-quality development."

zhangchenxu@chinadaily.com.cn