Group 1: Service Trade Performance - In Q1 2025, China's service trade totalled 19,741.8 billion yuan, a year-on-year increase of 8.7% [3] - Service exports reached 8,351.5 billion yuan, growing by 12.2%, while imports were 11,390.3 billion yuan, increasing by 6.2% [3] - The service trade deficit was 3,038.8 billion yuan, a decrease of 244.6 billion yuan compared to the same period last year [3] - Knowledge-intensive service trade grew to 7,524.9 billion yuan, up 2.6%, with significant contributions from business services and telecommunications [3] - Travel services saw the highest growth, with total imports and exports reaching 5,849 billion yuan, a 21.8% increase, and exports surged by 97.5% [3] Group 2: Manufacturing PMI Analysis - In April 2025, the manufacturing PMI was 49.0%, down 1.5 percentage points from the previous month, indicating a decline in manufacturing activity [5] - The production index was at 49.8%, reflecting a slight slowdown in manufacturing production [6] - The new orders index fell to 49.2%, suggesting a decrease in market demand for manufactured goods [7] - The raw materials inventory index dropped to 47.0%, indicating a reduction in the inventory levels of key raw materials [8] - The employment index was at 47.9%, showing a decline in employment levels within the manufacturing sector [9] Group 3: Non-Manufacturing PMI Insights - The non-manufacturing business activity index was 50.4% in April 2025, down 0.4 percentage points but still indicating expansion [10] - The construction sector's business activity index was 51.9%, while the services sector's index was 50.1%, both showing a decline from the previous month [10] - The new orders index for non-manufacturing fell to 44.9%, indicating a drop in market demand [10] - The input prices index was at 47.8%, suggesting a decrease in the overall price level of inputs used in non-manufacturing activities [11] - The business activity expectations index remained optimistic at 56.0%, despite a slight decline [11] Group 4: Comprehensive PMI Overview - The comprehensive PMI output index was 50.2% in April 2025, down 1.2 percentage points but still above the critical point, indicating continued expansion in production activities [13]

Core Insights - The service trade in China experienced rapid growth in Q1 2025, with a total import and export value of 19,741.8 billion RMB, reflecting a year-on-year increase of 8.7% [1] Summary by Categories Overall Service Trade Performance - Total service trade value reached 19,741.8 billion RMB, with exports at 8,351.5 billion RMB (up 12.2%) and imports at 11,390.3 billion RMB (up 6.2%) [1] - The service trade deficit was 3,038.8 billion RMB, which is a decrease of 244.6 billion RMB compared to the same period last year [1] Travel Services - Travel services showed the fastest growth, with total import and export value reaching 5,849 billion RMB, marking a growth of 21.8% [1] - Exports in travel services surged by 97.5%, while imports increased by 14.9% [1]

Core Insights - The report indicates a significant recovery in China's inbound tourism market, with an expected reception of 131.9 million inbound tourists in 2024, representing a 61% year-on-year increase and recovering to over 90% of 2019 levels [3][5] Group 1: Market Recovery - The recovery of the inbound tourism market is attributed to various facilitation policies, including visa, payment, and accommodation improvements [3][6] - By the end of 2024, China will implement unilateral visa-free policies for citizens from 38 countries, in addition to 25 countries with mutual visa exemptions, totaling 63 countries benefiting from these policies [3][6] - The inbound tourism market from Hong Kong, Macau, and Taiwan remains the largest, with 104.96 million tourists, a 54% increase, accounting for about 80% of the market [3][5] Group 2: City Performance - Major cities like Beijing, Shanghai, Guangzhou, and Shenzhen show high inbound tourist reception levels, each receiving close to or exceeding 4 million tourists in 2024 [5] - Shanghai and Shenzhen lead in inbound tourist numbers, with 977 million and 671 million overnight visitors, respectively [5] Group 3: Future Outlook - The first quarter of this year saw increased searches for flights and accommodations to China, indicating sustained demand for inbound tourism [6] - The integration of AI technology into travel services is expected to transform the inbound tourism sector, enhancing service standardization and market dynamics [6] Group 4: Recommendations for Development - The report suggests enhancing travel convenience for inbound tourists by optimizing existing visa facilitation policies and implementing electronic visas and smart entry procedures [7] - It emphasizes the need to address common pain points for foreign tourists, such as language barriers and access to information, to improve the overall travel experience [7] - Establishing a national marketing promotion system and a government platform for inbound tourism management is recommended to coordinate efforts between national and local tourism promotion [7]