China's service sector has maintained strong growth momentum this year, contributing 66.1% to the country's economic growth in the first half (H1) of 2026, up 5.9 percentage points from the same period a year earlier, the National Development and Reform Commission (NDRC), the country's top economic planner, said on Tuesday.

Since April, the business activity expectations index for the service sector has remained above 55% for five consecutive months, well clear of the 50% threshold that separates expansion from contraction, according to Li Chunfang, an NDRC official.

The sector has maintained positive momentum, underpinned by supportive policy expectations, growing market confidence, resilient consumption and vibrant opening up, Li noted at a press conference.

Following the release of a State Council guideline in April aimed at expanding the capacity and improving the quality of the service sector, the NDRC and 40 other government departments identified 131 key tasks for 2026 and 2027.

Over the past six months, relevant authorities have rolled out 81 supporting measures, while more than 60% of the key tasks have seen notable progress. A total of 27 provincial-level regions have also convened meetings or issued policy documents to promote development in the service sector.

With services now forming the bedrock of the Chinese economy, the country has elevated this sector's strategic importance to new heights.

In April, China held a conference focused on the service industry, the first of its kind at the national level, indicating a stronger policy focus on the development of a sector serving as both the largest pillar of China's economy and a major source of employment.

Official data showed China's service sector had surpassed 80 trillion yuan (about $11.87 trillion) in added value last year, making up 57.7% of the country's GDP.

During Tuesday's press conference, Li said China is stepping up efforts to deepen the integration of advanced manufacturing and modern services. Building on two rounds of national pilot programs launched since 2020, authorities are guiding local governments in carrying out a new round of pilot projects to promote closer integration between the two sectors.

Financial support has continued to expand. By the end of the second quarter of 2026, outstanding medium- and long-term loans to the service sector in domestic and foreign currencies stood at 76.22 trillion yuan, up 6.4% year on year, and 1.3 percentage points faster than overall loan growth, the People's Bank of China revealed.

Authorities are also seeking to make better use of existing land and buildings for development of the service sector, and cultivate more internationally competitive "China Services" brands.

Li said China will continue to strengthen resource support, improve policy measures, and accelerate their implementation to further expand the capacity and enhance the quality of its service sector.