China service trade grows and reduces historical deficit

Chinese sector grew 7.4% in the first eight months of 2025, driven by travel exports and knowledge services

China’s trade in services maintained solid performance in the first eight months of 2025, recording growth of 7.4% compared to the same period last year. The total of imports and exports has reached almost 5.25 trillion yuans (US $ 739 billion)according to the Ministry of Commerce of the country.

The increase was driven mainly by the growth of exports, which advanced 14,7%reaching 2.3 trillion yuanswhile imports grew more moderately, 2,3%totaling 2.95 trillion yuans. The result generated a significant reduction in the commercial service deficit of services, which 228 billion yuans compared to the same period as 2024.

Knowledge intensive services and prominent trips

Os Knowledge intensive services They remained one of the most dynamic sectors of Chinese trade, with imports and exports by adding 2.03 trillion yuansan annual growth of 6,7%. This segment, which includes information technology, research, consultancy and professional services, reflects the gradual transformation of the Chinese economy, which has been prioritizing activities of higher value added and innovation.

Another highlight was the Travel Services Tradewhich reached 1.45 trillion yuanswith an annual increase in 8,6%. Exports of tourist services recorded an impressive growth of 57,6%indicating that international demand for travel packages and services related to Chinese tourism is still expanding, especially after the resumption of global trips in recent years.

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Scenario and perspectives

The consistent performance of Chinese services not only highlights the country’s economic recovery, but also the growing ability to compete in strategic sectors globally such as technology, education and tourism. Analysts point out that the growth of knowledge services and travel services not only strengthens trade balance, but also contributes to the country’s advancement in sectors of higher added value, reducing the dependence on traditional manufactured products.

With the stabilization of imports and the expansion of exports, China’s service sector shows resilience even in the face of an uncertain global environment, marked by commercial tensions and international economic fluctuations. Increased revenue and the reduction of commercial deficit indicate that the country can not only maintain its growth pace, but also reinforce its strategic position as an exporter of high value -added services.

As China advances in sectors such as tourism, education, technology and financial services, experts believe that service trade will remain an engine of economic growth and an essential bridge for the country’s integration into the global economy in the coming years.

China and the challenge of transferring clean technology to the global south: advances, limits and perspectives of cooperation

In recent years, China has consolidated its position as a global leader in clean technology production, raising records in solar and wind energy, electric batteries and electric vehicles (VES). This growth has transformed the country into a strategic partner for nations of the Sul Global that seek to expand the generation of renewable energy and advance in low carbon economies.

Between January and December 2024, almost half of the imports of Chinese clean technologies were destined to developing countries, totaling more than US $ 72 billionwith the exception of batteries, whose global demand was dominated by United States and European Union. These products are crucial to expand access to electricity and boost renewable energy infrastructure, but many Global South governments want to go beyond simple purchase and sale, seeking a genuine technological cooperation.

The hope is that China will be not only supplier of products and services, but also Technical Knowledge Transmitter for local productive and innovative sectors. In the diplomatic field, Beijing already offers scholarships, workshops and technical cooperation platforms, with promises of expansion of these programs in the recent meeting of Shanghai Cooperation Organization in Tianjin. However, effective technology transfer remains complex and often controversial.

Historical experiences and current limitations

China itself has benefited from technology exchanges in the past, both in the 2010s, with the partnership of BMW and CATL for the production of electric batteries, and during the accelerated industrialization that began in 1978. However, experts warn that the global southern faces significant barriers to receive “upstream” knowledge, ie the decisive technological core for clean energy sectors.

Second Anders HoveFrom the Institute of Oxford Energy Studies, foreign partnerships in the Chinese automotive industry have evolved to sophisticated mechanisms that ensure foreign companies participate in production, but not necessarily in central knowledge. “It is not possible to put skills and knowledge in a container. Even if there was any textbook or archive of Wikipedia that could be transferred, this would not solve the fundamental challenge of human resources that developing countries face,” he explains.

O Southeast Asia presents clear examples of this dynamic. Vietnam, Thailand, Malaysia and Indonesia received part of the Chinese production, especially to assemble solar panels, but Know-how remains in Chinalimiting the real impact on local industrial capabilities. Even strategic sectors, such as the manufacture of electric vehicles in Thailand and the production of nickel in Indonesia, still depend on Chinese expertise, although Indonesia has more bargaining power due to the size of its market and control over essential raw materials.

Experiences of Brazil as a reference

In South America, the Brazil It emerges as an example of more advanced cooperation. Chinese companies like BYD e Great Wall Motors inaugurated electric vehicle factories in Camaçari (Bahia) and São Paulo, respectively, while the Goldkind set up wind turbine units. To the country, the transfer of technological knowledge emerged as “one of the central pillars of the bilateral agenda”, according to João CumarúSpecialist in Brazil-China Relations.

Long -term initiatives, such as the Centro Brasil-China for Climate Change and Innovative Technologiescreated in 2009 by universities from both countries, have promoted academic exchanges and joint development in bioenergy, solar and wind energy, as well as electricity transmission. Projects in the agricultural and sustainable aviation fuel sector and the CBERS satellite program reinforce the importance of structured cooperation for technology transfer.

According to Cummarú, effective exchanges require solid government supportclear policies on intellectual property and incentives for joint ventures. Financing, through institutions such as the National Bank for Economic and Social Developmentit is also essential for cooperation to come out of paper.

Barriers and incentives for the global south

Experts point out that export controllack of operational capacity and commercial objectives of Chinese companies are significant obstacles. To Jessica Liaoa professor at North Carolina State University, “the encouragement of companies is not helping the local economy, but to solve the excessive internal production capacity of China.”

Even so, there is room for mutual learning. Second Yixian Sunresearcher at the University of Bath, technology transfer should not be a unidirectional process, but a coevolutionin which Chinese companies and global southern partners develop technologies together. This model can expand the sustainability of initiatives and strengthen local value chains, despite structural and cultural challenges.

Perspectives and Challenges

While China maintains its overall leadership in clean energy, the transformation potential for global southern countries depends on robust policies, local technical capacity, and clear cooperation mechanisms. Examples from Brazil and Southeast Asia show that it is possible to advance, but also show the complexity of balancing commercial interests and transfer of strategic knowledge.

The challenge, therefore, goes beyond product export: involves education, skill development and creation of an institutional environment that allows to absorb and adapt clean technologiesensuring that sustainability becomes long -term economic growth.

The central question remains: Will China continue to be only a product provider or also become a partner in the construction of knowledge that will allow the global south to lead the transition to renewable energy? So far, signs are mixed, but bilateral experiences and cooperation centers point to a promising, though challenging, global technological collaboration path.

With information from Xinhua and Dialogue*