China Keeps Shopping for Services. Are You Selling? By ANDAMAN PARTNERS Co-Founder Rachel Wu

Hello everyone, Rachel from ANDAMAN PARTNERS, on the ground in Shanghai, China.

In my recent meetings here, I’m hearing a new question. Not which brand to bring to China, but which service.

Here is the reason: China’s economy grew 4.6% in the first nine months of this year, and exports grew 16%, led by high-tech products like electric vehicles (EVs). But China doesn’t only sell. Goods imports also grew over 20%, and China is buying more and more services from overseas.

From January to September, China bought 525 billion U.S. dollars of services from abroad, and sold 340 billion. That is a gap of about 185 billion dollars. And it’s not only Chinese tourists and students. More than a third is business services like technology licensing, IT, finance and consulting.

Across China, the services economy is steady. Activity in October was flat, but transport and IT are growing, and businesses are still expecting better times ahead. And Shanghai is where the services story is strongest. Services here now make up almost 80% of the city’s economy.

So for international companies, the opportunity is not only buying from China or selling products into China, but also selling services. And Shanghai is a good place to start. But you need to look for the right sectors and right customers.

Happy to share more, and let’s connect!