The US services trade surplus has hit a record high, with China as its largest source. As AI and digital technologies reshape the landscape of services trade, the complementarity between the two countries in this area is becoming more pronounced than ever.

by Wang Kai

“After our first trade mission to Beijing last year, I'm back for my second trip. We are discussing with a Chinese digital services company the digital operations of Brooklyn Made retail stores, from e-commerce and marketing to TikTok Shop”, Randolph Peers, President and CEO of the Brooklyn Chamber of Commerce told China Economic Net in an interview on the sidelines of the ongoing China International Fair for Trade in Services, which he is attending for the first time.

Randolph Peers, President and CEO of the Brooklyn Chamber of Commerce, New York speaks to China Economic Net at the 2026 Global Entrepreneurs Conference on Trade in Services hosted by Global Alliance for Trade in Services on Sept. 10, 2026. “Through the Alliance, we get to connect with small and medium- sized enterprises, because my constituency is small and medium sized enterprises in New York,” he said. [Photo/Wang Kai]

Services now account for more than a quarter of global trade and have become a key engine of international trade growth, according to Jiang Zengwei, chairman of the Global Alliance for Trade in Services.

Last year, China’s total imports and exports of services reached $1.18 trillion, up 7.4% year on year. Services imports hit $620 billion, the second largest in the world.

The United States remains the world’s largest services trader. Its services trade surplus reached a record $339.5 billion in 2025, with China being the largest source. According to data from the Office of the United States Trade Representative, the US ran a $34.4 billion surplus in services trade with China last year—equivalent to nearly $100 million a day.

In the first quarter of 2026, the US recorded a $9.366 billion services trade surplus with China, up 8.26% year on year. Travel services, particularly spending by Chinese students and tourists, as well as intellectual-property royalties and financial services, are among the main sources.

“Despite restrictions in some high-tech fields, cross-border e-commerce, AI applications and digital healthcare services have continued to grow moderately,” said Neil Wang, Global Senior VP and China Chairman of Frost & Sullivan, a US consulting firm. “Demand also remains solid for consumer-goods distribution, manufacturing supply-chain services and logistics infrastructure,” he said.

Opening doors

As Chinese companies are increasingly allocating resources globally, new openings are created for US businesses in the service sector.

“More Chinese companies are establishing overseas supply chains, manufacturing facilities, R&D operations, marketing networks, customer-service systems and local operating capabilities. This shift is creating new demand for professional services,” said Andrew Wu, CEO of Dun & Bradstreet China, a data and analytics services provider.

On the growth side, companies need to understand local markets, find customers and suppliers and identify new opportunities. Meanwhile, they need to protect cash flow, verify counterparties, understand ownership and control structures, manage credit and supply-chain risks and meet regulatory requirements in different markets.

“As a result, Chinese companies are looking for more sophisticated support in market intelligence, partner screening, risk management and regulatory compliance. That, in turn, is driving growth in Dun & Bradstreet’s services for companies expanding overseas,” according to Wu.

David He, managing director and senior partner at Boston Consulting Group, notes three trends: First, companies increasingly require integrated, one-stop solutions covering strategy, tax and compliance. Second, they are seeking longer-term support rather than one-off project advice. Third, AI is gaining traction, with companies exploring how to capture professional expertise and put it directly in their hands.

AI robotic surgeon on display at the China International Fair for Trade in Services held in Beijing on Sept. 9-13, 2026 in Beijing [Photo/Wang Kai]

China is continuing to open up its services market and refine its negative-list system for cross-border trade in services, having introduced a range of opening-up measures in tourism, healthcare and telecommunications, while establishing national demonstration zones for innovative development in services trade.

A catalogue of policies were also issued to encourage imports of R&D, design, intellectual-property and digital-technology services, aimed at strengthening innovation and accelerating industrial upgrading.

For global companies, including those from the US, the changes are creating more room to expand in China.

Under a pilot programme further opening up value-added telecommunications services in the Hainan Free Trade Port, Dun & Bradstreet became one of the first foreign-invested companies in China to obtain an ICP licence. The move paved the way for the development and launch of its first consumer-facing product, Global CHA, a global business-information platform.

“More importantly, the basic rules governing data as a factor of production are being developed, regulations for the secure and compliant flow of data are becoming clearer, and the systems governing foreign-investment access and services are being improved” Wu observes.

Natural partners

Fundamentally, the structural differences between the Chinese and US economies have created natural areas of complementarity in services trade.

“The US companies bring decades of international experience, established product portfolios and global business networks. China, meanwhile, offers a vast range of application scenarios, strong demand for customised services and rapid cycles of innovation,” Wu said.

In 2025, US financial-services exports to the rest of the world recorded $212.9 billion, while exports of intellectual-property-use fees reached about $126 billion, generating a surplus of about $80 billion.

Neil Wang of Frost & Sullivan pointed to four particular strengths of the Chinese market.

First, China has one of the world’s deepest consumer markets, with the largest middle-income population in the world. Greater interaction between urban and rural consumption, together with a more diverse regional economic landscape, gives service providers a wide range of real-world settings in which to test and refine their offerings, from mass adoption to premium upgrades.

Second, mature digital infrastructure and consumer ecosystem. High mobile-internet penetration, a mature e-commerce ecosystem and widespread adoption of AI applications make China a natural testing ground for digital services.

Third, China has engineering and industrial capabilities that are difficult to replicate elsewhere, with manufacturing system spanning the full range of industrial categories. Also, in frontier fields including AI, biomedicine and semiconductors, China is moving from application and deployment towards original innovation. Shorter innovation cycles are creating new sources of technological and industrial growth for long-term investors.

AI: the next big thing

AI and digital technologies are considered one of the most promising areas in China-US services trade.

According to Wang, AI is reshaping the global services trade in three ways: how services are delivered, what companies cooperate on and how work is divided.

In terms of delivery, services are shifting from labour-intensive content creation and information processing towards AI-agent-driven task execution and workflow automation. AI models can be integrated into corporate systems through APIs and agent workflows, reducing companies’ reliance on traditional headcount and physical location.

The scope of cooperation is changing as well. Traditional IT services are giving way to industry-specific AI solutions, enterprise knowledge systems and AI-agent engineering. Services are becoming more technology-intensive and increasingly dependent on data.

“The US continues to lead in foundational and frontier AI models, while China is building strengths in applications and industry deployment, drawing on its huge number of real-world use cases, engineering capabilities and data feedback.

The two countries therefore have potential areas of complementarity along the technology chain. The US has deep expertise in chip design, EDA/IP, foundational software ecosystems and frontier models. China, meanwhile, is leveraging its huge market, rapid iteration of applications and flexible supply chains to develop distinctive capabilities in cross-border e-commerce, livestreaming commerce, smart-device interaction and C2M reverse customisation,” Wang said.

There are risks to flag, though.

Despite the fact that 70% of financial institutions worldwide have already put AI on their agenda, fewer than 20% have achieved monetisation at scale, a BCG report shows.

David He suggests companies undergoing AI transformation focusing on three areas: strategy, talent and infrastructure: start with their core business, key metrics and key products, then use AI to strengthen them. For large scale adoption, company-wide effort is required, which essentially requires buy-in from employees at every level. Legacy systems also need to be decoupled and exposed through APIs, and new infrastructure needs to be built, including large-model computing systems, AI-agent platforms and AI coding capabilities.