Core Insights - China's service trade is entering a new development stage characterized by continuous expansion, structural optimization, and accelerated transformation of momentum. The total service trade volume is expected to exceed $1 trillion for the first time in 2024, marking a historical high [1] Group 1: Growth and Structure - The service trade's total import and export volume exceeded $737 billion in the first eight months of this year, indicating robust growth that contributes to global economic certainty [1] - Knowledge-intensive services are becoming a new growth engine, with exports in telecommunications, computer, and information services increasing. Digital cultural products like online literature and games are gaining traction internationally [2] - Travel services are experiencing a strong recovery, with the expansion of visa-free policies significantly enhancing the attractiveness of China as a travel destination, transforming travel services from a major source of trade deficit to a key factor in narrowing it [2] Group 2: Challenges and Opportunities - Despite the growth, traditional service sectors like logistics and construction still dominate, while high-value services such as finance and legal services have a high import dependency of 60% [3] - The eastern region contributes nearly 80% to the national service trade, while the central and western regions, despite rapid growth, remain small in scale. There is a lack of sufficient voice in global rule-making for service trade [3] - Recent policies from the Ministry of Commerce and other departments aim to promote service exports through 13 specific measures, focusing on digital and green services as key support areas [4] Group 3: Policy and Strategic Alignment - The development of high-quality service trade should align closely with the strategy to expand domestic demand, as service consumption has become a crucial driver for domestic demand growth [4] - Encouragement of scenario innovation and business model integration is essential to increase the supply of quality services, leveraging China's large market and potential to attract global resources [4]

Core Points - The Ministry of Commerce and nine other departments issued a notice on September 24 to promote service exports, outlining 13 policy measures aimed at enhancing service trade and supporting various new service export models [1][2]. Group 1: Policy Measures - The notice emphasizes the utilization of existing funding channels to support service exports, particularly in digital services, high-end design, research and development, and green services [1]. - It aims to optimize the zero tax rate declaration process for service exports and increase the precision of export credit insurance policies [1]. - The measures include improving customs supervision systems and facilitating cross-border personnel movement and inbound consumption [1]. Group 2: Data and Talent Policies - The notice proposes to optimize visa policies for foreign investment enterprises, researchers, and high-level talent coming to China, including expanding the scope of visa-free policies [2]. - It also includes the development of an important data directory and guidelines for data identification, as well as adjustments to the negative list for data export in free trade zones [2]. - The support for cross-border transmission of personal information within multinational companies is also highlighted, allowing for easier internal data flow [2].

Core Insights - The 20th National Congress of the Communist Party of China emphasizes the importance of enhancing the service trade system and innovation to achieve high-quality development in service trade [1] Group 1: Global Service Trade Trends - Global service trade has significant potential and is expected to grow faster than goods trade, with its position in global trade continuing to strengthen [1] - The demand for data trade is accelerating due to advancements in artificial intelligence and digital technologies, with information service trade growing at an average rate exceeding 9%, significantly higher than the 5% growth in overall service exports [1] - The rise of green service demand is driven by the green technology revolution and the need to respond to EU carbon tariffs, leading to increased demand for green technology services and environmental consulting [2] - The deep adjustment of global industrial and supply chains is promoting the rapid development of productive service trade, as companies localize production and provide services across borders [2] - The trend of nearshoring in international division of labor is accelerating the regionalization of service trade, with a noticeable shift towards regional and short-distance travel services post-COVID-19 [2] Group 2: Service Trade Development Ecosystem - The development of service trade relies on resource factors, industrial competitiveness, enterprise participation, international market demand, and supportive national policies [3] - There is a need to innovate new business models and accelerate the cultivation of new growth points in service trade, with platforms like the service trade fair playing a crucial role [3] - Gathering resource factors such as technology, talent, and capital is essential for service trade development, particularly with the application of AI technologies creating new service demands [3] - Enhancing the competitiveness of the service industry is vital, leveraging China's strengths in manufacturing and goods trade to boost logistics, software, and information services [4] Group 3: Market Expansion and Collaboration - The focus should be on nurturing both large enterprises and innovative SMEs in the service trade sector, especially in digital services [4] - Expanding international market cooperation is crucial, with efforts to strengthen service trade ties with both developed and developing countries [4][5] - The implementation of service trade cooperation frameworks, such as the BRICS service trade cooperation roadmap, is essential for enhancing international collaboration [5]