China is facing some challenges in its drive to become a major trader in services, officials and experts said.

"One major challenge is that production costs are rising all over the world. In addition, some services sectors cost a lot and are not environmentally friendly," Lyu Jijian, deputy director of the department of trade in services and commercial services at the Ministry of Commerce, told China Daily.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a think tank for the ministry, said that China's trade in services is still in a weak position compared with developed economies.