Total trade value stood at 3.39 trillion yuan (about 492.6 billion U.S. dollars), according to the data.
Service exports expanded 22.8 percent year on year to 1.64 trillion yuan, and service imports were 1.75 trillion yuan, up 18.9 percent from a year ago.
The service trade deficit dropped 20.1 percent to 107.73 billion yuan between January and July.
China’s trade of knowledge-intensive services maintained steady growth in the period, rising 10.2 percent year on year to about 1.42 trillion yuan.
Sectors such as telecommunications and information services saw rapid increases in exports, while insurance services were among the fastest growing areas in imports.
Travel service trade continued to recover, with its trade value expanding 7.5 percent from a year ago to 462.23 billion yuan.
In contrast to merchandise trade, service trade involves transportation, tourism, telecommunications, construction, advertising, computing, and accounting.
The ministry said it would promote the negative list on cross-border service trade nationally and seize opportunities coming from implementing the Regional Comprehensive Economic Partnership to expand service trade with all member countries.
New business models such as bonded artwork exhibitions will be nurtured, and the imports of technologies and services in carbon emission reduction and environmental protection will be encouraged, the ministry added.