China service sector drives 66.1% of economic growth in H1 2026

China’s service sector has demonstrated strong growth momentum, contributing 66.1% to the country’s economic growth in the first half of 2026. This represents a 5.9 percentage point increase compared to the same period in the previous year, according to the National Development and Reform Commission (NDRC).

Li Chunfang, an official from the NDRC, noted that the service sector's economic activity expectation index has remained above 55% for five consecutive months since April, well above the 50% threshold that distinguishes expansion from contraction. This positive trend is attributed to supportive policy expectations, rising market confidence, resilient consumption, and increased openness.

Following State Council guidelines to improve service sector quality, the NDRC and 40 other departments have identified 131 key tasks for 2026 and 2027. To date, 81 support measures have been introduced, with over 60% of key tasks showing significant progress. Additionally, service exports in the first seven months of the year grew by 17.1%, while consumption by overseas visitors in China rose by 27.8%.