In the first half of this year, China's service trade deficit totaled 3.9 billion US dollars, down 33 percent year on year.

This is the first time for China's service trade decifit to decrease in five years, according to sources with the ongoing seminar on China's business development.

But due to the limited growth of China's competence in high-added-value service industry, the decifit will not vanish in the near future, analysts said.

In the first half year, China's service trade volume reached 73 billion US dollars, with income growing 31 percent to 34.5 billion US dollars and expense rising 19 percent to 38.5 billion US dollars.

China's service trade decifit is mostly in area of transport and insurance, while surplus is mostly in area of tourism, entrepot trade, tenancy and commission.

In the first half year, China's cargo export rocketing pushed forward the rapid growth of its transport and insurance income, reducing the deficit in these two areas remarkably.

Meanwhile China's income from international tourism also soared, which has become the most important factor to shrink service trade deficit.

Source: Xinhua