From footwear to AI services: China moves up the value chain in exports

From footwear to AI services: China moves up the value chain in exports

From footwear to AI services: China moves up the value chain in exports

https://www.scmp.com/tech/article/3352020/footwear-ai-services-china-moves-value-chain-exports

Publish Date: 2026-05-03 08:30:00

Source Domain: www.scmp.com

Here’s a polite, respectful, and comprehensive summary of the article using an unordered list with 6 key points for context:

  • Shift in Trade Focus: China has transitioned from a dominant exporter of physical goods like footwear, bags, and furniture to a leader in exporting advanced manufacturing technology and services.

  • Service Exports Growth: In 2025, China’s exports in the fields of telecoms, computer, and information services grew by 13% to reach 808 billion yuan (US$118 billion), vastly outperforming the decline in traditional goods exports.

  • Decline in Traditional Exports: Traditional physical goods exports saw significant drops; for instance, footwear exports fell by 9% to US$46 billion, while handbags and suitcases collectively decreased by 13% to US$30 billion.

  • Rising Technological Exports: Emerging industries, such as information and communication technology, engineering services, data analytics, and research and development, are booming in China.

  • Success Stories: Companies like iRootech, based in Guangzhou, are pioneering in exporting industrial computer vision and AI technology, achieving notable successes such as reducing travel costs for German firm Putzmeister.

  • Future Projections: The shift towards high-value service exports underscores China’s potential to maintain robust international trade amidst changing market dynamics.

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