According to the World Trade Organization, the services industry covers a wide range of sectors: from business to tourism, financial to health, transportation and environment. It's playing an increasingly important role in China's economic output and job creation. But experts say China's services industry still has a long way to go.

At the Beijing International Fair for Trade in Services, delegates are eager for business opportunities. About twenty business orders each worth up to $100 million are expected be placed during the event.

Tang Kam Tim, chairman of Mainland HK Economy & Trade Committee said, "The service industry is very important, so we have a large Hong Kong delegation that covers areas including auditing, legal consultancy, expo organizing and others."

In 2010, China's trade service volume reached $360 billion. That is double the figure in 2005. In 2011, trade volume reached a record high of $419 billion. China is now the world's fourth largest service importer and third largest exporter.

Experts say the strong growth is mainly driven by rising domestic consumption and the industry's enhanced capacity.

Although huge demand fuelled double-digit growth in past years, challenges do exist.

China has generally been strong in service sectors like shipping, outbound labour cooperation and tourism. The nation sees potential in knowledge and capital-intensive areas including finance, consultancy and telecom.

Expansion is also expected in a geographical sense.

Li Yong, vice chairman of China Association of International Trade said, "If we look at the structure of China's trade, 90 percent of the trade in services happen in 11 provinces. And China's major trade partners concentrate in countries and regions such as Hong Kong, the European Union ..."

In trade in goods, we often talk about China's trade surplus. In trade of services, are we looking at a surplus or deficit?

Officials say China will promote service outsourcing in areas of software, information and construction, while actively expanding imports to bring in advanced technology and management experiences from overseas.