Illustration: Xia Qing/GT

As generative artificial intelligence (AI) tools become more widely used, demand for related skills training in China is rising. In Shanghai, for example, a non-degree institution specializing in adult education and lifelong learning has reportedly expanded its course offerings in this area. Not only does this development reflect the growing relevance of AI in skills training, but it also points to the broader evolution of China's services market.

For some households in China, education may now account for a rising share of overall spending. This trend has helped support a sizeable consumer market spanning a broad range of needs and age groups, from skills training to interest-based courses in areas such as sports, painting and dance, as well as subscription-based learning platforms and apps. The market is highly dynamic, with new formats and delivery models continuing to emerge.

Education is only one way to read the evolution of China's services consumption. Across the economy, new forms of consumption continue to emerge. 

Earlier this month, the Chinese Academy of International Trade and Economic Cooperation published a report noting that, based on international experience, when per capita GDP reaches about $15,000, household consumption typically accelerates its shift from goods toward services. In 2025, China's per capita GDP stood at about $14,000, a stage where this adjustment typically gathers pace.

China's services consumption points to considerable underlying potential in the broader consumption landscape. Yet some foreign commentary on China's consumer economy places disproportionate emphasis on goods consumption, at times treating it as a proxy for overall demand. In doing so, it overlooks the expanding role of services in driving consumption growth and the range of opportunities this segment presents.

In the services sector, several developments are worth noting. First, the scale of China's services consumption continues to expand, creating new areas of demand. According to data from the National Bureau of Statistics (NBS), retail sales of services increased by 5.4 percent year-on-year during the January-May period, pointing to sustained momentum in the market.

Second, the structure of services consumption is evolving alongside the emergence of new business models. The interaction between technology and cultural content is helping to generate new services across areas ranging from tourism to entertainment. AI-assisted tours, digital museums and immersive cultural experiences are becoming more common, while drone light shows are increasingly used in cities. These new technologies are providing fresh momentum to growth in the sector. 

According to data from the Ministry of Commerce (MOFCOM), services categories such as culture and recreation, telecommunications and information services, tourism-related consulting and leasing services, and transportation registered double-digit growth in retail sales last year.

Third, the expansion of China's services consumption market has coincided with a continued opening of the sector to foreign participation. In recent years, China has introduced a range of measures in telecommunications, healthcare, finance, culture and tourism, and the digital economy. Market access has been further eased, while efforts to improve the business environment and advance institutional opening-up - in terms of rules, regulations, and standards - have continued. These steps have created greater scope for international firms to participate in China's services market and engage with its ongoing development.

According to MOFCOM data, the country's services trade reached a record high of more than 8 trillion yuan ($1.2 trillion) in 2025, growing by 7.4 percent year-on-year. Within this total, services imports stood at 4.46 trillion yuan, exceeding exports of 3.63 trillion yuan.

China's services consumption carries considerable potential, and the country is also increasingly sharing these opportunities with international businesses. Against this backdrop, a more balanced reading of China's consumption data is needed. Rather than focusing narrowly on goods consumption, it is important to take a broader view that also includes services. Data released by the NBS on Tuesday showed that China's total retail sales of goods and services increased by 2.8 percent year-on-year in the first five months of 2026, pointing to steady overall growth.

Returning to AI training as a small but illustrative case, it is possible to see more clearly some of the active dynamics within this broader pattern of growth. While some foreign commentary at times offers a partial reading of consumption trends, a fuller view of the data - across both goods and services - suggests that the overall market has remained broadly stable. At the same time, the longer-term trend toward consumption upgrading continues to hold.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn