China services exports surge 17.1% as AI microdramas test next export wave

China's services exports, led by personal cultural and entertainment services, grew 17.1% YoY in the first seven months of 2026, signaling a shift beyond goods like EVs and batteries. The rise of AI-generated microdramas is emerging as a test case for exporting digital content amid rising tariffs on physical goods. This could reshape trade dynamics as partners focus on manufacturing overcapacity.