Economy

Service sector trade to pass $300b mark

By Zhou Siyu (China Daily)
Updated: 2010-10-27 10:39
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BEIJING - China's service trade volume is expected to exceed $300 billion by the end of 2010, up more than 20 percent year-on-year, said officials from the Ministry of Commerce on Tuesday.

The total volume of trade in services over the first half of this year hit $165.6 billion, up 31.7 percent year-on-year. Service sector exports grew 41.2 percent to $76.97 billion, while imports registered an increase of 24.5 percent, reaching $88.66 billion, according to data released by the ministry.

Among different sectors, construction and transportation demonstrated the most conspicuous increases, official figures showed.

Propelled by the surges, the country's service trade deficit narrowed to $11.69 billion, $5.05 billion less than the same period last year, said the ministry.

"Growth in service trade is expected to continue And we are working further to boost its development," said Wang Huiying, deputy director-general of the department of trade in services under the Ministry of Commerce.

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As the world economy recovers from the financial crisis, the development of the service sector will be enhanced as a part of the effort to transform China's economic growth model, she said.

Despite the international financial crisis, China's trade in services sustained steady growth for the last five years, and has emerged as one of the most important sectors in the economy.

The country's total volume in trade in services almost doubled from $157.1 billion in 2006 to $286.8 billion in 2009.

By 2009, China ranked fifth worldwide in service exports and fourth in imports, three places higher than in 2005, according to data from the ministry.

However, China still faces challenges in further developing its trade in services, experts warned.

"Chinese businesses are yet to establish their brands internationally, and they will need more talents to help them overcome the cultural as well as linguistic barriers," said Zhao Ping, deputy director of the department of consumer economics under the Chinese Academy of International Trade and Cooperation.

The government should also offer more support for the development of service trade, she added.