ZH compiled this report based on a news report from China Daily on February 26.
China’s decision to expand its catalog of encouraged services imports signals a structural shift in the country’s opening-up strategy — one increasingly focused on innovation capacity, green transformation and deeper integration into global value chains.
According to new guidelines jointly released by the Ministry of Commerce, the National Development and Reform Commission and the Ministry of Industry and Information Technology, the revised catalog prioritizes the import of research and development, industrial design, testing services, intellectual property, and digital technology services.
While services trade has long been part of China’s economic framework, this update suggests a recalibration: services imports are no longer supplementary — they are becoming strategic inputs into high-quality development.
From Goods Powerhouse to Value Chain Integrator
China’s trade in services reached 8.08 trillion yuan ($1.18 trillion) in 2025, up 7.4 percent year-on-year. Services imports stood at 4.46 trillion yuan, reflecting steady expansion despite global trade headwinds.
More notably, imports of knowledge-intensive services reached 1.26 trillion yuan, underscoring rising demand for advanced expertise and technical capabilities.
This trajectory reflects a broader transition. Rather than focusing solely on manufacturing output, policymakers are positioning China as a hub for integrating high-end services into industrial upgrading.
Consultancy leaders, including executives from Roland Berger, note that producer services — such as supply chain management, consulting and R&D — are increasingly essential for extending value chains both upstream and downstream. In regions with strong manufacturing bases, these services can accelerate movement toward higher-end capabilities and foster industrial clustering.
Supporting the Green and Digital Shift
A significant portion of the updated catalog emphasizes green and sustainability-related services.
Priority areas include:
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Energy conservation and resource recycling
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Environmental governance and pollution control
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Ecological restoration and carbon reduction
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Circular economy and climate-related services
By expanding imports in these segments, China aims to access global expertise that can help accelerate its low-carbon transition and improve environmental governance.
At the same time, digital services and intellectual property-related imports are expected to reinforce innovation capacity, aligning with the country’s push to develop “new quality productive forces” and upgrade its industrial structure.
Signaling Deeper Opening-Up
Beyond industrial policy, the move also carries trade diplomacy implications.
By encouraging imports of high value-added services, China signals willingness to rebalance trade structures and create new market opportunities for global firms. Business leaders from multinational companies such as FedEx have emphasized China’s central role in global supply chains and expressed confidence in expanding their footprint as services trade deepens.
For international companies, the expanded catalog may translate into greater participation in sectors such as consulting, logistics, healthcare, green construction and digital infrastructure.
A Measured but Strategic Shift
The updated catalog does not represent a dramatic policy pivot. Instead, it forms part of a gradual restructuring of China’s economic model — one that seeks to:
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Reduce reliance on traditional property- and infrastructure-led growth
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Enhance productivity through service-manufacturing integration
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Strengthen green and digital competitiveness
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Embed China more deeply in global knowledge networks
For global observers, the significance lies less in short-term trade figures and more in long-term direction. Services imports are increasingly being treated as strategic enablers of innovation, sustainability and governance modernization.
If successfully implemented, the policy could help reshape China’s role in global trade — from a dominant goods exporter to a central orchestrator of cross-border expertise and high-value services integration.