China’s annual trade in services exceeded US$1 trillion for the first time last year, showing significant potential for further growth.

China’s import and export value of services reached a record high of 7.5 trillion yuan (about US$1.05 trillion), up 14.4 per cent year-on-year, according to the latest data from the Ministry of Commerce (MOC).

Exports grew by 18.2 per cent year-on-year and imports by 11.8 per cent, according to the MOC.

Driven by the global trends of digitalisation, smart technology advancement and green development, China’s trade in services has grown in scale, its structure has been further optimised and its international competitiveness has been enhanced, said Li Jun, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the MOC.

He noted that the comprehensive relaxation and optimisation of China’s visa-free transit policy played a role in boosting inbound tourism last year.