China's service trade overall performance stable: MOFCOM

Source: Global Times Published: 2020/8/7 0:46:14

Visitors interact with a robot at a services trade fair in Beijing on May 28, 2019. File Photo: IC

The scale of China's service trade dropped in the first half year of 2020 amid the COVID-19 pandemic, but its overall performance remained stable while its trade deficit declined and the proportion of knowledge-intensive service trade rose, China's Ministry of Commerce said in a statement on Thursday. 

In the first six months of the year, the total volume of China's service trade declined to 2.2 trillion yuan ($0.32 trillion), down 14.7 percent year-on-year, the ministry announced. 

Exports in service trade performed better than imports. Service trade exports amounted to 912.79 billion yuan, down 2.2 percent compared with the same period last year; import volumes was 1.31 trillion yuan, down 21.7 percent. 

It is notable that the total volume of China's knowledge-intensive service trade grew 9.2 percent, accounting for 43.7 percent of the total service trade - up 9.6 percentage point. 

China's exports of royalties for intellectual property (IP), insurance service and telecom computer and information services were up 37.2 percent, 18.7 percent and 15.2 percent respectively in the first half of the year. 

Analysts gave the credit for upgrading the global digital economic to the COVID-19, and said the world's demand for knowledge-intensive service is growing, noting strengthening competitiveness of domestic enterprises will drive further growth of IP and IT related sectors. 

Meanwhile the pandemic hit China's travel services which declined 42.9 percent, dragging down the total service trade. 

China's service trade remains grim in the second half of the year, said the ministry, which will speed up work on a national version of a cross-border negative list of trade in services. 

Posted in: ECONOMY

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