Core Viewpoint - The main issue in China's service consumption is the insufficient supply of high-quality services, prompting the Ministry of Commerce to introduce policies to enhance service supply capacity and stimulate new service consumption growth [1][2]. Policy Optimization - The Ministry of Commerce aims to increase high-quality service supply through "opening up externally and loosening restrictions internally," focusing on expanding pilot programs in telecommunications, healthcare, and education [2][3]. - Financial and tax support is identified as a crucial factor for boosting service exports, with a reported 12.2% year-on-year growth in service exports in Q1 2025, and a significant increase in knowledge-intensive service exports [2][3]. International Market Expansion - Service trade is becoming increasingly important, with service exports accounting for 11.5% of total exports in the first half of 2025, indicating a shift from being a "world factory" to a "world service provider" [4]. - The upcoming service trade fair in Beijing will showcase over 190 key achievements in service trade, aiming to enhance the quality of service imports and meet diverse consumer demands [4]. Service Consumption Growth - From 2020 to 2024, China's service consumption has grown rapidly, with per capita service consumption expenditure increasing by an average of 9.6% annually, contributing significantly to overall consumer spending [6]. - Service consumption is seen as a key area for boosting overall consumption, with potential to enhance the quality of life through increased spending in sectors like healthcare and elder care [6][7]. New Consumption Models - The Ministry of Commerce plans to support the development of new consumption models and scenarios, promoting activities that integrate commerce, tourism, culture, and sports to stimulate service consumption [5][6]. - By including various service sectors in subsidy systems, the government aims to alleviate consumer cost pressures and stimulate demand, thereby enhancing service supply and expanding the market [7].

Group 1: Artificial Intelligence Development - The State Council issued an opinion to implement the "Artificial Intelligence +" action plan, aiming for over 70% penetration of new intelligent terminals and agents by 2027, and over 90% by 2030 [2] - The action plan focuses on six key areas: scientific technology, industrial development, consumption quality, public welfare, governance capability, and global cooperation [2] - A systematic foundation for AI will be built around eight aspects: models, data, computing power, applications, open source, talent, policies, and security [2] Group 2: Satellite Communication Industry - The Ministry of Industry and Information Technology released guidelines to promote the development of the satellite communication industry, targeting over 10 million satellite communication users by 2030 [4] - The guidelines emphasize expanding market access and supporting low-orbit satellite internet development, as well as promoting direct satellite connections for mobile devices [4] - The plan includes enhancing the satellite communication ecosystem and establishing national standards for technology and products [4][5] Group 3: Service Trade Development - The Ministry of Commerce is set to release policies to support service exports, focusing on key sectors and projects [5] - Financial policies will enhance export credit insurance and improve service trade funding settlement [5][6] - The initiative aims to facilitate international market expansion for service trade and support enterprises in participating in international exhibitions [6] Group 4: Industrial Investment in Guangdong - Guangdong Province introduced a plan to accelerate effective industrial investment from 2025 to 2027, proposing ten measures to enhance investment [8] - The plan aims to strengthen key industries such as electronics, petrochemicals, and automotive, while promoting innovation and industrial chain resilience [8][9] - It emphasizes the importance of attracting high-quality projects and cultivating talent in emerging sectors like AI and robotics [9] Group 5: Employment Support in Anhui - Anhui Province issued a notice to strengthen employment support for small and medium-sized enterprises, providing social insurance subsidies for eligible workers [11] - The notice includes measures for loan support and skills training to enhance workers' employability [11] - It aims to streamline the process for accessing employment support funds and improve service efficiency [11]

Group 1 - The Ministry of Commerce is set to introduce a series of policies to promote service exports, focusing on fiscal, financial, and regulatory measures to reshape the industry landscape and consumer lifestyles [1][2] - In Q1 2025, China's service exports grew by 12.2% year-on-year, with knowledge-intensive service exports increasing to 2.1% and travel service exports leading with a remarkable growth rate of 97.5% [1][3] - Financial innovations, such as targeted export credit insurance, are enabling small and micro enterprises to confidently take on orders and expand their markets, addressing the issue of risk aversion [1][2] Group 2 - The travel service sector has seen significant improvements in consumer experience due to regulatory reforms, with travel service imports and exports reaching 584.9 billion yuan, driven by visa facilitation and optimized duty-free policies [2] - The cross-border flow of data has enabled a digital service import and export value of 2.13 trillion yuan in 2024, reflecting a 5.3% year-on-year increase, and enhancing operational efficiency for businesses [2] - The role of service trade intermediary organizations is evolving from a "bridge" to an "engine," facilitating international market expansion and supporting enterprises in establishing overseas marketing networks [2] Group 3 - In the first half of 2025, service exports accounted for 11.5% of total exports, indicating a shift towards a service-oriented economy, with a surplus in knowledge-intensive service exports expanding by 40.92 billion yuan [3] - The combination of precise fiscal funding, financial support for small enterprises, and regulatory innovations is fostering a more dynamic and resilient service consumption market in China [3] - This transformation signifies not only quantitative growth but also qualitative improvements, offering consumers richer choices and better experiences, while paving the way for high-quality economic development driven by services [3]

Industry Overview - 25 countries have suspended parcel shipments to the U.S. due to new regulations that require all packages valued at $800 or less to pay applicable taxes starting from August 29 [1] - China's trade with the Arab League reached a record high of 1.72 trillion yuan in the first seven months of the year, marking a 3.2% year-on-year increase [2] - The Ministry of Commerce in China is set to optimize the zero tax rate declaration process for service exports, aiming to enhance export tax rebate efficiency [3] Major Platforms - Mini version of Labubu has sold out in Australia, New Zealand, and Japan on AliExpress, indicating strong overseas demand [4] - JD.com's cross-border e-commerce brand Joybuy has officially launched in France and plans to enter the German market soon [5] - Temu topped the Brazilian e-commerce traffic rankings with 410 million visits in July, a 70% month-on-month increase [6] - Amazon plans to build over 800 logistics distribution points in Brazil by the end of 2025 to enhance delivery efficiency [7] Company Updates - BYD announced the construction of an assembly plant in Malaysia, expected to commence production in 2026 [8] - Leapmotor's European manufacturing base will be established in Zaragoza, Spain, with production set to begin in Q3 of next year [9] - Lucky Coffee, a brand under Mixue Group, opened its first overseas store in Malaysia, selling nearly 2,000 cups on the opening day [10] - Alibaba's international business revenue grew by 19% year-on-year, driven by strong performance in cross-border operations [11] - Didi's international business saw a 24.9% year-on-year increase in order volume, reaching an average of 1.196 million daily orders in Q2 [12] - Anker Innovations reported a 33.36% year-on-year increase in total revenue for the first half of the year, reaching 12.867 billion yuan [13] - Legg's revenue grew by 29.56% year-on-year to 3.145 billion yuan, with overseas warehouse business showing significant growth [14] - Zhiou Technology's revenue increased by 8.68% year-on-year, with 50% of its production capacity for U.S. shipments relocated to Southeast Asia [15]

Core Viewpoint - The 2025 China International Service Trade Fair (CIFTIS) will be held in Beijing from September 10 to 14, focusing on the theme "Digital Intelligence Leading, Service Trade Renewed," highlighting the characteristics of service trade [1][3]. Service Trade Growth - In the first half of this year, China's service import and export total reached 3.9 trillion yuan, a year-on-year increase of 8%, marking a historical high for the same period [1]. - Service exports accounted for 11.5% of total exports, an increase of 0.7 percentage points compared to the same period last year [1]. - The transportation service export reached 418.5 billion yuan, growing by 23.9%, while travel service exports reached 174.87 billion yuan, growing by 68.7%, indicating strong growth in both traditional and emerging service sectors [2][3]. Policy Support - The development of service trade is expected to benefit from global growth, with the WTO projecting a 4.0% increase in global service exports by 2025 [5]. - The Chinese government plans to introduce new policies to support service exports, focusing on financial, regulatory, and market expansion measures [6]. - The Ministry of Commerce is tracking the implementation of the negative list for cross-border service trade and aims to enhance the liberalization and facilitation of service trade [6]. Service Consumption Potential - From January to July, national service retail sales increased by 5.2%, with service consumption becoming a significant driver for service trade growth [7]. - The CIFTIS will feature over 40 supporting activities to integrate service consumption, trade, and investment, promoting new service consumption models [7][8]. - The government will focus on policy promotion, expanding service supply, and innovating service consumption scenarios to stimulate consumption potential [8].

Core Insights - The Chinese government is accelerating the implementation of policies to support service trade, focusing on innovation and new growth drivers in foreign trade [1][2] - The World Trade Organization (WTO) projects a 4% growth in global service exports by 2025, indicating a positive trend for service trade [1] - China's service trade has been growing rapidly, ranking among the top globally, but still has gaps compared to advanced levels [1] Policy Support - The State Council's recent meeting highlighted the need to enhance the international competitiveness of service exports, with specific focus areas including research, consulting, e-commerce, and digital services [2] - The Ministry of Commerce plans to optimize the zero tax rate declaration process for service exports and increase support for export credit insurance [2] - Traditional service sectors like transportation and travel are currently driving the growth of service exports, with transportation service exports reaching 418.5 billion yuan, up 23.9%, and travel service exports at 174.87 billion yuan, up 68.7% [2] Digital Trade Development - The development of digital service trade is prioritized, with a focus on cross-border e-commerce and the digital transformation of trade processes [3] - The Ministry of Commerce aims to promote and regulate cross-border data flow, enhancing international data service capabilities [3] - The reduction of the negative list for cross-border service trade is seen as a key measure to expand service imports [3] Implementation and Future Outlook - The Ministry of Commerce is actively monitoring the implementation of the negative list for cross-border service trade and addressing any issues that arise [4] - Increased support in fiscal, tax, financial, and regulatory aspects is expected to boost service trade, particularly service exports [5] - The overall outlook for China's service trade remains positive, with expectations of continued growth and structural optimization throughout the year [5]

Core Viewpoint - The Ministry of Commerce will soon introduce a series of policies to promote service exports, focusing on fiscal, financial, and regulatory facilitation measures [1][2]. Fiscal Policy - The Ministry plans to utilize existing funding channels to increase support for key areas and projects in service exports [1]. - There will be enhancements to the Service Trade Innovation Development Fund to attract more social capital into service and digital trade sectors [1]. - The process for zero tax rate declaration for service exports will be optimized to improve efficiency in export tax rebate applications [1]. Financial Policy - There will be an increase in support for export credit insurance, with a focus on improving the precision of these policies [1]. - Financial services will be enhanced for small and medium-sized enterprises, aiming to improve the convenience of insurance services [1]. Regulatory Facilitation - The Ministry will work on improving bonded supervision systems and facilitating personnel exchanges to boost inbound consumption [1]. - Efforts will be made to enhance the convenience of fund settlement in service trade and encourage the transformation and transaction of intellectual property [1]. - The promotion and regulation of cross-border data flow will be prioritized to accelerate the development of international data service businesses [1]. International Market Development - The Ministry will leverage service trade intermediary organizations to assist enterprises in exploring international markets and support participation in overseas exhibitions [2]. Service Consumption Expansion - Next month, the Ministry will introduce policies aimed at expanding service consumption, utilizing fiscal and financial tools to enhance service supply capabilities and stimulate new service consumption growth [2].

Macro News - The Ministry of Commerce will soon introduce a series of policy measures to promote service exports, focusing on fiscal, financial, and facilitation aspects to optimize the policy environment [1] Industrial Sector - In July, the profits of large-scale industrial enterprises decreased by 1.5% year-on-year, with the decline narrowing by 2.8 percentage points compared to June, marking two consecutive months of narrowing [2] - From January to July, the profits of large-scale industrial enterprises fell by 1.7% year-on-year, with the decline narrowing by 0.1 percentage points compared to the first half of the year [2] Service Sector - The Ministry of Commerce aims to include more service consumption areas in the encouraged foreign investment industry catalog, addressing the issue of insufficient high-quality service supply [3][5] - The Ministry will promote the expansion of high-quality service supply through "internal opening and external opening," and will expand pilot programs in telecommunications, healthcare, and education [5] - The initiative aims to stimulate innovation and reform in the service consumption sector, enhancing the vitality of various business entities and better meeting consumer demand in areas such as health, elderly care, childcare, and housekeeping [5]

Group 1 - The 2025 Service Trade Fair will be held in Beijing from September 10 to 14, with preparations nearly complete [1] - The Ministry of Commerce plans to introduce a series of policies to promote service exports, focusing on fiscal, financial, and facilitation measures [1][11] - In the first half of the year, China's total service trade reached 3.9 trillion yuan, a year-on-year increase of 8% [3] Group 2 - Service exports amounted to 1.7 trillion yuan, growing by 15%, and accounted for 11.5% of total exports, up 0.7 percentage points from the previous year [3] - The growth in service exports is primarily driven by traditional sectors such as transportation and travel, with transportation services exporting 418.5 billion yuan (up 23.9%) and travel services exporting 174.87 billion yuan (up 68.7%) [7] - Knowledge-intensive service exports reached 865.04 billion yuan, growing by 7.8%, with significant contributions from other business services and telecommunications, which saw exports of 416.33 billion yuan and 377.16 billion yuan, growing at 6.9% and 14.6% respectively [10]

Core Viewpoint - The 2025 Service Trade Fair will be held in Beijing from September 10 to 14, showcasing over 190 key achievements in service trade, including 91 globally and nationally debut services, aimed at expanding high-quality service imports [1][3]. Group 1: Event Details - The fair will feature participation from over 50 countries and more than 20 international organizations, highlighting local leading enterprises and their unique service trade characteristics [3]. - The event will utilize distinctive venues such as Shougang Park, planning over 40 supporting activities including cultural markets, gourmet food, performances, and classic sports exhibitions [3]. Group 2: Policy Measures - The Ministry of Commerce will introduce several policy measures to expand service consumption, utilizing fiscal and financial tools to enhance service supply capabilities [5]. - New policies will promote comprehensive pilot demonstrations for service industry openness, expanding trials in telecommunications, healthcare, and education sectors [5]. Group 3: Financial and Tax Policies - In terms of fiscal policy, there will be increased support for key areas and projects in service exports, leveraging existing funding channels [7]. - The export tax refund application process will be optimized to improve efficiency [7]. Group 4: Financial Support - There will be enhanced support for export credit insurance, with a focus on improving service accessibility for small and medium-sized enterprises [9]. Group 5: Regulatory Facilitation - The regulatory framework will be improved to facilitate customs supervision, enhance personnel exchanges, and promote inbound consumption [11]. - Efforts will be made to encourage intellectual property transactions and facilitate cross-border data flow [11]. Group 6: International Market Development - The role of service trade intermediary organizations will be emphasized to assist enterprises in exploring international markets and participating in overseas exhibitions [13].