AI and Experience-Driven Consumption Reshape China’s Services Economy

Dragon Media News Desk

The 2026 China International Fair for Trade in Services in Beijing has highlighted the rapid transformation of China’s services economy toward more digital, intelligent and experience-driven forms of consumption. Held at Shougang Park from September 9 to 13, the fair brought together 413 exhibitors in the culture and tourism services exhibition area alone, with artificial intelligence, virtual reality, humanoid robots, brain-computer interfaces and digital entertainment emerging as major attractions.

One of the most eye-catching demonstrations came from the Jingju Theater Company of Beijing, which presented an AI-powered system capable of transforming an ordinary visitor into a traditional Peking Opera character on screen within moments. Experiences that once required specialized studios, costumes and significant expense can now be created quickly through AI, reflecting a broader shift in Chinese consumption from the purchase of goods toward culture, entertainment and personalized experiences.

For the first time, this year’s CIFTIS established a dedicated “China Services” exhibition zone featuring more than 140 cases across 12 major areas of services trade. Nearly 40 percent of the cases incorporate core technologies such as artificial intelligence, large models and intelligent agents. The exhibits range from age-friendly digital solutions to smart childcare platforms that provide integrated health management from birth through preschool.

The expansion of service consumption is also visible in China’s economic data. In the first seven months of this year, retail sales of services rose 5 percent year on year, outpacing growth in retail sales of consumer goods by 3.9 percentage points. In 2025, China’s per capita spending on services reached 13,602 yuan, accounting for 46.1 percent of total per capita consumption expenditure.

China aims to increase the total scale of its services industry to more than 100 trillion yuan by 2030. Policy support is being directed toward elderly care, childcare, culture and tourism, health and sports services. Analysts say the target represents not simply an expansion in scale, but a broader structural shift in the economy and its sources of growth.

China’s international presence in services trade is also expanding rapidly. In the first seven months of this year, the country’s services trade totaled nearly 4.45 trillion yuan, up 8.3 percent year on year. Knowledge-intensive services increased 6.6 percent to 1.96 trillion yuan, accounting for 44.1 percent of total services trade.

Chinese services brands are also strengthening their global position. According to the “Trade in Services 100 2026” report released during the fair, China ranks second globally with 21 brands among the world’s 100 most valuable trade-in-services brands. Their combined value stands at 876.8 billion US dollars, reflecting a broader shift from “Made in China” toward “China Services” and “China Brands.”

The culture and tourism exhibition further demonstrated how technology is being integrated into everyday consumption. Artificial snow, AI-generated photography, virtual Great Wall experiences, digital sports, art auctions and innovative tea products all formed part of the exhibition, offering immersive experiences for visitors of different ages.

The broader message from this year’s CIFTIS is that China’s services economy is entering a new stage in which technology, culture, tourism and international trade are becoming increasingly interconnected. The shift toward experience-driven consumption is not only supporting domestic demand, but also creating new opportunities for innovation, services trade and global commercial cooperation.