Service providers from the United States are trying to expand their presence in the world's second-largest economy, as the service sector is becoming a crucial driver of growth amid China's economic rebalancing process.

"China's economy is entering a very difficult transition phase. The service sector in China is ripe for further development as we move to a more knowledge-intensive economy," said Gregory Gilligan, chairman of the American Chamber of Commerce in China.

AmCham China, which represents more than 1,000 member companies, released the Challenges and Opportunities in China's Service Sectors report on Wednesday.