The Service Industry Has Maintained Sound and Stable Growth, with Development Drivers Continuing to Strengthen

The Service Industry Has Maintained Sound and Stable Growth, with Development Drivers Continuing to Strengthen

—Series Report XI on Achievements in Economic and Social Development during the 14th Five-Year Plan Period

National Bureau of Statistics, June 4, 2026

During the period of the 14th Five-Year Plan, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the development of the service industry. A range of policy measures have been introduced to promote the quality and efficiency of the service industry, foster new business forms and models in services, expand the opening-up of the service industry, and advance industrial integration. This has resulted in a favorable situation for the service industry characterized by steady expansion in scale, continuous improvement in quality and efficiency, and vigorous development of new growth drivers.

I. A Relatively Rapid Growth in the Service Industry, with Its Supporting Role Becoming More Pronounced

(I) The Steadily Increasing Contribution of the Service Industry to Economic Growth

The value added of the service industry has grown rapidly, increasing from RMB 57.4851 trillion in 2020 to RMB 80.8879 trillion in 2025. From 2021 to 2025, the average annual real growth rate was 5.8%, which was 0.4 and 0.9 percentage points higher than the average annual growth rates of Gross Domestic Product (GDP) and the secondary industry’s value added, respectively. The share of the service industry’s value added in GDP rose from 55.5% in 2020 to 57.7% in 2025, maintaining its position as “half of the national economy” for 11 consecutive years. In 2025, the contribution rate of the service industry to national economic growth reached 61.4%, an increase of 6.3 percentage points from 2020, solidifying its role as the “main driving force” of economic growth.

(II) The Increasing Vitality of Business Entities in the Service Industry

The number of business entities in the service industry has increased significantly, and their operating scale has expanded steadily, laying a solid foundation for the high-quality development of the service industry. By the end of 2024, there were 28.71 million corporate units engaged in service activities nationwide, an increase of 7.05 million from 2020, representing an average annual growth rate of 7.3%. Their share in the total number of corporate units was 76.0%, an increase of 2.3 percentage points from the end of 2020. In 2025, the number of service enterprises above designated size continued to increase, their operating income grew steadily, and their total profit grew rapidly, indicating sustained improvement in business operations.

(III) The Increasingly Enhanced Employment Absorption Capacity of the Service Industry

The positive development of the service economy and its transformation and upgrading have created a large number of new jobs, providing a broader space for development and more diverse career choices for job seekers. By the end of 2025, the number of people employed in the service industry was 357.98 million, accounting for 49.4% of the national workforce, an increase of 1.7 percentage points from the end of 2020. The service industry’s share of employment has consistently ranked first among the three industries. New service forms such as live-streaming e-commerce, online entertainment, and the sharing economy have emerged one after another, giving rise to a large number of new professions like online streamers, food delivery riders, and video content creators.

(IV) Further Advancement of Opening-up of the Service Industry

China has promoted deeper opening-up in key service sectors such as tourism, transportation, healthcare, finance, and telecommunications, leading to simultaneous improvement in the scale and quality of trade in services. From 2021 to 2025, China’s total imports and exports of services accumulated to RMB 33.5 trillion, an increase of 37.6% compared to the period of the 13th Five-Year Plan, with an average annual growth rate of 12.1%. Notably, in 2025, the total exceeded RMB 8 trillion, reaching a record high. The competitiveness of service exports has been markedly enhanced. As China continues to expand the list of visa-free countries and optimizes entry policies, “Travel to China” and “Shopping in China” have been gaining popularity. In 2025, China’s travel service exports reached RMB 394.0 billion, an increase of 49.5% over the previous year, marking the fastest growth among all service export sectors for two consecutive years. The overseas influence of China’s “new three cultural exports”—online literature, online films and television series, and online games—has been increasingly expanding, driving the rapid growth of knowledge-intensive service exports. In 2025, knowledge-intensive service exports grew by 10.5% over the previous year, accounting for 50.5% of total service exports. The service industry has remained a key area for attracting investment. In 2025, the actual utilized foreign capital in the service industry was RMB 545.1 billion, accounting for 72.9% of the total actual utilized foreign capital. Over the past five years, it has consistently been the largest sector for foreign capital inflow in China. Among these, e-commerce services have become a hotspot for foreign investment in China, with actual utilized foreign capital increasing by 75.0% over the previous year ^[1].

II. The Transformation and Upgrading of the Service Industry Has Accelerated, with the Industrial Structure Becoming More Advanced and Optimized

(I) A Sound Growth in the Modern Service Industry

During the period of the 14th Five-Year Plan, China’s service industry structure has become more optimized, with modern service industries becoming an important force driving industrial transformation and upgrading. Industries such as information technology and business services have shown strong development momentum. From 2021 to 2025, the average annual growth rates of the value added for the information transmission, software and information technology services industry, and the leasing and business services industry were 13.1% and 10.7%, respectively, which were 7.7 and 5.3 percentage points higher than the average annual real growth rate of GDP. In 2025, their shares in the service industry’s value added reached 8.7% and 7.9%, respectively, an increase of 2.0 and 1.9 percentage points from 2020. The effectiveness of financial services in supporting the real economy has significantly improved. Over the past five years, the banking and insurance sectors have cumulatively provided RMB 170 trillion in new funds to the real economy through various channels such as credit, bonds, and equity, steadily increasing the supply of financing. Loans for scientific research and technology, medium- and long-term loans for manufacturing, and loans for infrastructure grew at average annual rates of 27.2%, 21.7%, and 10.1%, respectively, providing precise and effective services to key areas ^[2]. Modern logistics services have provided stronger support. In 2025, the total value of national social logistics reached RMB 368 trillion, an increase of 22.7% from 2020. The ratio of total national social logistics costs to GDP dropped to 13.9%, a decrease of 0.8 percentage points from 2020, reaching the lowest level in history, indicating continuous improvement in logistics efficiency ^[3]. The total volume of express delivery business grew from 83.4 billion pieces in 2020 to 199 billion pieces in 2025, with an average annual growth rate of 19.0%. Express delivery services have become the “flowing lifeblood” for the smooth circulation of the economy.

(II) New Drivers Cultivated and Expanded for the Service Industry

New-generation information technologies such as big data, cloud computing, and artificial intelligence have seen accelerated breakthroughs and widespread application, and new drivers and new advantages in the service industry have been shaped at a faster pace. Strategic emerging service industry has continued to show positive trends. From 2021 to 2025, the operating income of strategic emerging service enterprises above designated size achieved an average annual growth of 9.1%. The explosive development of artificial intelligence has driven an exponential leap in computing power demand, leading to rapid growth in industries such as software development and circuit design. In 2025, the operating income of integrated circuit design and software development enterprises above designated size increased by 22.1% and 11.2%, respectively, compared with the previous year. High-tech services have flourished. In 2025, the operating income of high-tech service enterprises above designated size grew by 7.9% compared with the previous year. Investment in related fields has been continuously scaled up. From 2021 to 2025, investment in fixed assets in the high-tech service sector achieved an average annual growth of 9.0%, significantly faster than the average annual growth rate of investment in fixed assets in the tertiary industry. The development of specialized, refined, distinctive, and innovative (SRDI) “little giant” enterprises in the service industry has delivered an outstanding performance. In 2025, the operating income of SRDI “little giant” enterprises in the service industry increased by 12.8% compared with the previous year, with the growth rate accelerating by 4.2 percentage points; R&D expenses grew by 6.7%, accounting for 15.1% of operating income, far exceeding the average level of the service sector, indicating vigorous enterprise innovation vitality. Innovation-intensive regions such as Beijing, Shanghai, Guangdong, Zhejiang, and Jiangsu have displayed prominent strengths, with their SRDI “little giant” enterprises in the service industry ranking among the top nationally.

(III) Vigorous Development of the Platform Economy

The widespread adoption of online transactions has driven the rapid development and expansion of the platform economy, with new forms of e-commerce characterized by content-driven, social, and instant features displaying remarkable vitality. Platform transaction volume has continued to expand. In 2025, the national platform transaction volume (e-commerce transaction volume) reached RMB 46.7 trillion, an increase of 29.1% compared with 2020. Online services such as food delivery, local life services, online health, and education and training have continued to expand, with service scopes constantly extending. In 2025, platform transaction volumes for catering services, residential and household services, tourism, entertainment services, and health services increased by 31.6%, 26.1%, 24.4%, and 20.8%, respectively, compared with the previous year. Livestreaming e-commerce and instant retail have developed at a rapid pace. By the end of 2025, the number of online live-streaming users in China had reached 810 million, an increase of 31.9% compared with 2020, with a user penetration rate of 72.3% among internet users ^[4]. New forms of e-commerce have accelerated their shift from the traditional “goods-selling” model to a composite ecosystem encompassing “goods + fulfillment + platform services,” becoming a new engine for the growth of the services economy. In 2025, the transaction volume of live-streaming e-commerce grew by over 10% compared with the previous year; transaction volume on instant delivery platforms for categories like catering and fresh produce increased by 30.3% year on year.

III. The Continuous Improvement of Quality and Efficiency of the Service Industry, with Growth Potential Gradually Unleashed

(I) The Steady Improvement of the Quality of Public Services

Guided by the goal of enhancing convenience and improving service experiences, China has steadily increased the supply of quality services in key areas such as culture and sports, education and healthcare, and government services, further boosting the people’s sense of fulfillment and satisfaction. Cultural and sports facilities have been expanded and upgraded. In 2025, the number of public libraries and cultural centers nationwide reached 3,253 and 3,517, respectively, an increase of 41 and 190 compared with 2020, continuously densifying the public cultural service network; the number of sports venues nationwide reached 5 million, with a total area of 4.37 billion square meters and a per capita sports venue area of 3.1 square meters, representing increases of 34.8%, 41.0%, and 40.9%, respectively, compared with 2020, significantly enhancing the “hardware” support capacity of sports infrastructure. Cultural and sports facilities have been expanded and upgraded. In education, in 2025, China’s completion rate of nine-year compulsory education and gross enrollment rate in senior secondary education reached 96.1% and 92.0%, respectively, an increase of 0.9 and 0.8 percentage points compared with 2020, bringing basic education to the average level of high-income countries worldwide. In healthcare, by the end of 2025, the number of health technicians, beds in medical and health institutions, and medical and health institutions nationwide had reached 13.46 million, 10.04 million, and 1.11 million, respectively, representing growth of 26.0%, 10.3%, and 8.3% compared with 2020, indicating a continuous increase in healthcare service capacity. Government services have become more accessible and efficient. Since its launch, the National Government Service Platform has standardized 5.21 million service items and over 36,000 high-frequency, hot-spot service applications, strongly promoting the principle of “entering only one door” for offline services and “handling all matters on one network” for online services across various regions and departments, steadily improving the standardization, normalization, and integration of government services ^[5].

(II) Significant Improvement in the Application Level of Digital and Intelligent Technologies

The intelligent technologies have been increasingly integrated into all fields and the entire process of economic development of the service industry, with notable achievements in the digital transformation of the service industry. In 2024, 67.9% of enterprises above designated size in the tertiary industry applied digital technologies, among which 62.4% utilized cloud computing and 39.4% utilized the Internet of Things (IoT). Basic informatization has become a standard configuration for most service enterprises. The application scenarios for artificial intelligence have expanded across multiple dimensions. With the deepening of the “AI Plus” initiative, the economic forms and business models empowered by artificial intelligence have become increasingly diverse. In 2024, 20.2% of enterprises above designated size in the tertiary industry applied artificial intelligence. Multiple professional service fields such as finance, logistics, education, and law are utilizing AI technologies like deep learning, intelligent scheduling, and natural language processing to provide consumers with precise and efficient decision support and personalized solutions. Network infrastructure has achieved a leap in capacity. By the end of 2025, China had built 4.84 million 5G base stations, averaging 34 per 10,000 people; the number of 10 GPON ports with gigabit capability reached 31.62 million, and 5G-Advanced networks had covered over 330 cities. China has built the world’s largest and most technologically advanced information infrastructure. In terms of computing power facilities, China has built 42 ten-thousand-card intelligent computing clusters, with a total intelligent computing power exceeding 1,590 EFLOPS, ranking among the top globally ^[6].

(III) Continuous Release of Cross-Industry Integration Effects

China has actively promoted integrated development in areas such as “manufacturing + services,” “agriculture + services,” and cross-sector penetration within the service industry, providing important support for accelerating the transformation of old and new growth drivers and fostering new quality productive forces. Modern services and advanced manufacturing have been deeply integrated. Driven by both policy guidance and technological innovation, high-value-added services such as R&D design and information services have accelerated their penetration into the manufacturing process. Manufacturing enterprises have continuously transformed into comprehensive providers of “products + services + solutions,” significantly enhancing servitization and intelligent models, accelerating the construction of smart factories, and extending the industrial chain towards the high end. By the end of 2025, China had cumulatively built over 35,000 basic-level, over 8,200 advanced-level, and over 500 leading-level smart factories, and cultivated 15 pilot-level smart factories ^[7]. Modern services have boosted the modernization of agriculture and rural areas. An increasing number of service entities have shifted from providing single-link services to offering multi-link, comprehensive services, promoting the organic connection between smallholder farmers and modern agricultural development. By the end of 2025, 1.11 million business entities nationwide provided socialized services, serving nearly 93 million smallholder households, with an annual service area exceeding 2.29 billion mu-times, of which 1.78 billion mu-times were for grain and oil crops ^[8]. Socialized agricultural services have undergone iterative upgrading, with service capacity being steadily enhanced. Innovative practices in the deep, multi-dimensional integration of culture, sports, tourism, and commerce—such as “tourism+” and “sports+”—have flourished. Cross-sector products built around trending themes such as content IP, sporting events, and traditional intangible cultural heritage have driven increases in both tourist flows and consumer spending. In 2025, the operating income of travel agencies and related service enterprises above designated size increased by 9.3% compared with the previous year.

(IV) Steadily Accelerated Pace of Green Transformation Development

Low-carbon environmental protection has gradually evolved from conceptual advocacy to widespread industry practice, propelling China’s service industry to continuously reach new heights in green development. The green efficiency of the transportation industry has significantly improved. China has actively adjusted its transport structure, vigorously promoted the shift of medium- and long-distance bulk cargo and container transport from road to rail and water, and deepened the implementation of the “single bill system” and “single container system” for multimodal transport, further improving inter-modal transport connectivity. In 2025, national waterway and railway freight volumes reached 10.12 billion tons and 5.28 billion tons, respectively, representing increases of 32.9% and 16.0% compared to 2020. The number of enterprises above designated size in multimodal transport and transport agency grew by 72.3%, and their operating income grew by 87.4% compared to 2020. The sharing economy model in areas such as mobility and accommodation has continued to thrive. As of December 2025, China’s ride-hailing user base had reached 540 million, an increase of 47.7% from 2020, accounting for 47.9% of the total internet user population ^[9]. Models such as shared bikes, shared accommodation, and shared office spaces have provided people with more convenient life services and flexible operational methods, while effectively reducing resource waste and redundant production. The energy-saving and low-carbon services industry has developed rapidly. The number of business entities engaged in environmental technologies covering comprehensive environmental management, inspection and monitoring, and energy-saving design has continued to grow, and their supporting role in the green transformation of the economy and society has been steadily strengthened. In 2025, the number of enterprises above designated size in water conservancy, environment, and public facilities management grew by 29.1% compared to 2020.

Looking back on the 14th Five-Year Plan period, reforms across all sectors of China’s service industry were comprehensively deepened, achieving positive results in the high-quality development of the service sector. Looking ahead to the 15th Five-Year Plan period, it is essential to thoroughly implement the decisions and plans of the CPC Central Committee, with an emphasis on letting demand play a guiding role, tackling challenges in reforms, empowering development through science and technology, and pursuing open cooperation. Efforts should be made to deeply implement the action plan for expanding capacity and improving quality in the services sector, promote the extension of producer services toward specialization and the high end of the value chain, and facilitate the high-quality, diversified, and convenient development of consumer services. More “China Service” brands should be cultivated, and new ground should be broken in the high-quality development of the services sector, so that it can play an even more critical role in advancing the Chinese path to modernization.

Note:

[1] Source: Ministry of Commerce.

[2] Source: National Financial Regulatory Administration.

[3] Source: China Federation of Logistics & Purchasing.

[4] Source: China Internet Network Information Center.

[5] Source: Wang Yuxiao, Benefiting Enterprises and Facilitating the Public! The National Government Service Platform Facilitates “One-Stop Government Services”, Xinhua News Agency, May 31, 2025,https://www.news.cn/fortune/20250531/368651e868704a848cab8e628abeb173/c.html.

[6] Source: Ministry of Industry and Information Technology.

[7] Source: Ministry of Industry and Information Technology.

[8] Source: Ministry of Agriculture and Rural Affairs.

[9] Source: China Internet Network Information Center.

Translate from: Websit of the National Bureau of Statistics,June 4,2026