China's service trade deficit rose year after year because supply failed to meet demand in the country's underdeveloped service sector, according to a latest report from the China Academy of Social Sciences (CASS).

The report says China's service trade deficit grew to 9.39 billion U.S. dollars in 2005 from 5.6 billion U.S. dollars in 1997, a 67.7 percent increase within eight years.

China's rapid economic growth created strong demand for various services but the gap between supply and demand was widening in the service sector, says the report.

China's service trade volume totaled 157.08 billion U.S. dollars in 2005, according to previous reports.

Source: Xinhua