This study develops an evaluation index system for national business translation capability, measures China’s business translation capability (BTC) from 2012 to 2023, and examines the impact of this index on the imports and exports of KIBS. The results show that China’s business translation capability has been steadily increasing over the years and significantly promotes KIBS trade. When other control variables remain constant, a 10% growth in China’s business translation capability leads to an 11.1% increase in KIBS foreign trade flow and a 16.4% increase in export flow. Heterogeneity analysis indicates that the BTC enhancement evidently has promoted trade growth in the ICT sector. This study provides implications for improving China’s business translation capability and business translation education.