CIFTIS: The Services Trade Comes of Age
This year's China International Fair for Trade in Services (CIFTIS) in Beijing has made one thing clear: services are the new engine powering the Chinese mainland's next growth chapter. Over five days of high-level forums and tech showcases, experts and officials are zeroing in on how digitalization and AI are turbocharging an industry poised to reshape the economy.
Key takeaways from the Forum on Development of Trade in Services:
- Growth gap: With services now making up just over half of GDP—still below the 70–80% seen in mature economies—there's vast room to expand.
- Productivity surge: Total factor productivity in sectors like finance and commerce is on the rise, says Marshall Mills of the IMF.
- Milestone moment: The total services trade volume hit the $1 trillion mark in 2024, placing the Chinese mainland second globally.
- Growth rates: Since 2012, services trade has grown an average 6.7% yearly—1.7 times faster than goods trade.
Speakers highlighted how industry expansion and trade demand feed each other in a virtuous circle. Tu Xinquan from the China Institute for WTO Studies points out that as the services sector expands, trade in services becomes a natural progression. Increased trade not only boosts domestic supply but also supercharges consumption—an engine of growth in its own right.
Digital transformation was front and center at CIFTIS. Long Guoqiang from the Development Research Center of the State Council pointed out that many services, once confined by borders, are now tradable thanks to digital platforms. From AI-driven education tools to robot baristas, exhibitors are showcasing how technology is redefining everything from travel and healthcare to sports.
Chinese Vice Commerce Minister Sheng Qiuping added that the Chinese mainland's small and medium-sized enterprises are leveraging AI to break into global markets, raising the share of knowledge-intensive services exports. Looking ahead, pilot programs in telecom and medicine, plus openings in education and culture, promise to deepen integration with the world market.
With trade in services set to play a starring role in global economic recovery, CIFTIS underscores a bigger trend: the shift from goods to services, driven by innovation and collaboration. For young global citizens, entrepreneurs, and digital nomads, the message is clear—services are where the future growth and opportunities lie.
Reference(s):
CIFTIS emerges as key engine for China's high-quality development
cgtn.com
