Promising Service Export Sectors to China

1. Telemedicine Services

  • Demand for contactless healthcare services surged during COVID-19 lockdowns, utilizing remote systems.
  • Mobile apps streamlined the process—from registration to consultation and result tracking—making services more accessible.
  • The remote healthcare market reached RMB 186 billion in 2020, a 23.5% YoY increase.
  • Public demand for virtual medical services, including online consultations and expert bookings, grew rapidly.
  • Ping An Good Doctor recorded over 1.1 billion visits during the pandemic, with new sign-ups increasing more than tenfold.
  • Local players include Ping An Good Doctor, DingXiang Doctor, XiaoDouMiao, and Good Doctor Online, with tech-based newcomers like Andon Health, AliHealth, and JD Health entering the scene.
  • Due to high market entry barriers, foreign companies are advised to form partnerships with local firms, especially to provide services in rural areas lacking medical infrastructure.

2. Cybersecurity Solutions

  • The Personal Information Protection Law came into effect on November 1, 2021.
  • As digital transformation accelerates, cybersecurity has become a priority.
  • China’s information security market reached USD 9.78 billion in 2021 and is expected to grow to USD 18.79 billion by 2025 (IDC).
  • In 2021, security hardware accounted for 47.8% of total network security spending, while the software market is projected to grow at a CAGR of 21.2% over five years.
  • Major investment areas by sector: finance, government/education, healthcare, services, high-tech manufacturing, and general manufacturing.
  • Key focus areas: cybersecurity, IT infrastructure, remote backup, email security, disaster recovery, and endpoint protection.
  • SMEs often outsource cybersecurity services due to staffing limitations.
  • Most advanced tech providers are based in Europe and North America (e.g., CISCO, Sophos, TrendMicro).
  • Chinese leaders include Qianxin (Qi An Xin), TopSec, and Huawei.
  • Software management, consulting, and integration services present strong growth potential due to limited domestic software capabilities.
  • Carefully evaluate local partners and prioritize collaboration for tailored, localized services.

3. Oral Care Services

  • Mask-wearing during COVID heightened public hygiene awareness, bringing oral care into focus.
  • Interest in dental care products surged, driving a broader wellness trend.
  • Demand has shifted from consumer products to in-clinic services.
  • During JD.com’s 6.18 Shopping Festival, dental service transactions increased 800% YoY in 10-minute intervals.
  • Comprehensive service packages offering implants, whitening, and orthodontics gained traction.
  • Notable global brands: Philips, Oral-B, and rising star “Worms”; Chinese brands: Xiaomi, Usmile, and Saky.
  • Integration with internet platforms is effective for delivering remote consultations and holistic healthcare solutions.

4. Home Training Services

  • Home fitness demand exploded during the pandemic and continues to grow.
  • Even pre-COVID, in-home exercise products and services were on the rise.
  • Gym chains and athletic brands produced training content and videos for home users.
  • In 2020, China’s sports industry reached RMB 3 trillion, up 1.7% YoY; home fitness accounted for 72.08% of activities.
  • Sales of indoor fitness equipment and usage of workout apps soared.
  • Top fitness apps by weekly use (Q1 2021):
    1. Lexin Health – 21.3 sessions
    2. Buduoduo – 19.5 sessions
    3. Tangdou – 17.4 sessions
  • Startups offering digital, mobile services continue to enter the space.
  • Segment target customers and offer personalized services, blending workouts with diet, disease management, and lifestyle coaching.
  • Participation in local fitness expos is recommended for networking and distribution.

5. VR/AR Content

  • With 5G rollout, VR/AR tech is expanding into education, gaming, healthcare, and entertainment.
  • The shift toward contactless culture due to COVID-19 boosted VR/AR adoption.
  • China’s VR/AR market grew to RMB 41.4 billion in 2020 (up 46.2% YoY), and hit RMB 54.5 billion in 2021.
  • While outdoor VR venues slowed, consumer demand for all-in-one VR devices and content rose.
  • China accounted for 30%+ of global VR/AR funding in 2020 (USD 5.76 billion), leading the world.
  • Top players in 2020: Pico (acquired by Bytedance), HTC, Valve Index, and Sony.
  • Lacking in 5G-ready content, China is open to collaborations with international partners.
    *Example 1: A VR gaming company launched a joint title with a local VR hardware firm.
    *Example 2: US-based Zspace partnered with Chinese firms to enter the VR education market.
  • Focus on creative, scalable content rather than politically sensitive themes.

6. Advanced Driver Assistance Systems (ADAS)

  • China’s auto industry is evolving from manufacturing to mobility services, integrating IT and IoT technologies.
  • With 5G-V2X commercialization, the ADAS sector—key to autonomous driving—is growing fast.
  • The ADAS market reached RMB 84.4 billion in 2020 (up 19.3% YoY), expected to surpass RMB 225 billion.
  • ADAS unit shipments hit 15.5 million in 2017, projected to reach 70 million by 2025 (20% CAGR).
  • 5G enhances V2X communication, boosting Cooperative Adaptive Cruise Control (CACC) systems.
  • Leading ADAS suppliers and market shares (2017):
    • Bosch: ACC 20.6%, FCW 33.4%, PA 28.3%
    • Continental: ACC 18.3%, FCW 32.6%, PA 20.8%
    • Yatai: ACC 25.9%, FCW 29.9%, PA 15.1%
  • With low domestic ADAS adoption (10%), China is moving toward mandatory deployment.
  • Korean firms with advanced ADAS technologies can seek partnerships with Chinese automakers or OEMs.

7. Mobile Game Content

  • Lockdowns during COVID led to explosive growth in mobile gaming.
  • Widespread smartphone use accelerated mobile game adoption.
  • Users rose from 517 million in 2014 to 665 million by mid-2020.
  • Market size jumped from RMB 27.49 billion (2014) to RMB 209.68 billion (2020), regaining growth momentum with a 32.61% increase.
  • Mobile gaming market share grew from 24.01% to 75.24% in the same period.
  • Most-downloaded foreign games come from Japan, followed by Korea.
  • Compared to Korean and Japanese games, Chinese games are more accessible with less upfront spending.
  • The key to entering the Chinese market is obtaining a publishing license (known as “banhao”), which has been restricted for Korean games since THAAD.
  • If license acquisition remains difficult, companies can consider joint ventures with local firms or target platforms like Apple App Store, which bypasses some restrictions.

8. Eco-Friendly Plant Projects

  • With economic development, China prioritizes environmental protection and carbon neutrality goals.
  • High demand for solutions in air pollution control, wastewater treatment, waste incineration, and hazardous waste processing.
    • Air: pollutant tracking, odor control, early warning systems
    • Water: industrial and domestic wastewater treatment, groundwater purification
    • Soil: land reclamation, soil restoration for agriculture and construction
    • Industrial parks: animal waste management, green industry park development, chemical plant safety systems
  • International players from North America, Europe, Japan, and Korea have high entry potential.
  • Collaboration with Chinese companies through tech transfer and partnerships is encouraged.
  • Participate in local expos and trade fairs to build networks and discover partners.

9. Scripted Role-Playing Games (“Script Kill”)

  • Script Kill, China’s version of Mafia games, is rapidly growing among younger consumers.
  • The industry involves scriptwriters, distributors, actors, and venue operators, forming a stable ecosystem.
  • In H1 2021, it ranked third among offline entertainment activities after movies and fitness.
  • Market size hit RMB 11.74 billion in 2020 (up 7% YoY), and projected to reach RMB 17.02 billion in 2021.
  • Offline stores surged to around 12,000 by the end of 2019, up from 2,400 earlier that year.
  • Online users increased by 8 million during the pandemic.
  • Korean TV shows like “Crime Scene” are popular in China, showing cultural appeal.
  • Localize Korean-style content, props, venue design, and host training to increase appeal.
  • Gen Z consumers are digital natives—integrate both offline venues and online platforms (e.g., apps, WeChat mini-programs) for hybrid marketing.

10. Early Childhood Educational Content

  • China’s online education market is booming, driving new demand for infant and toddler content.
  • Well-known global IPs are highly sought after for collaboration.
  • As of July 2020, early education app users reached 82 million, with screen time up 15.04% YoY.
  • Over 60% of listed Chinese animation companies focus on content for children, generating solid revenue.
  • IP monetization is expanding through Internet TV, character licensing, and theme park projects.
  • Korean IPs like “Baby Shark” and “Pororo” are expanding via cafes, parks, and TV content.
  • While local production is improving with government support, Chinese buyers are cautious about lesser-known foreign IPs.
  • IP co-production or licensing deals with Chinese IPTV and media groups (e.g., Wasu Media) offer viable entry strategies.