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China to expand trade in services within APAC, boost openness

By ZHONG NAN | China Daily | Updated: 2024-09-14 07:42
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The skyline of Beijing. [Photo/VCG]

Fueled by a galloping services sector, digital technologies and industrial chain advantages, China's trade in services is set to become a key driver in supporting economic growth in the Asia-Pacific region and attracting foreign investment, said economists and business leaders on Friday.

In contrast to goods trade, trade in services refers to the sale and delivery of intangible services like transportation, tourism, telecommunications, advertising, education, computing and accounting.

China will increasingly engage in services trade within the Asia-Pacific region through abundant high-quality human resources, digital technologies, the Regional Comprehensive Economic Partnership and international cooperation, said Long Guoqiang, vice-president of the State Council's Development Research Center.

Long was speaking at a sub-forum during the ongoing 2024 China International Fair for Trade in Services in Beijing.

Sharing similar views, Vladimir Kazbekov, vice-president and chief operating officer of Shanghai-headquartered New Development Bank, said China has made notable strides in liberalizing its services sector, creating new opportunities for further advancement and attracting foreign investment.

The country's dedication to expanding market access, aligning its compliance mechanisms with international standards and implementing a negative list for cross-border trade in services underscores its strong commitment to this process, said Wang Bo, deputy director of the department of trade in services and commercial services at the Ministry of Commerce.

Echoing that sentiment, Jiang Hao, a partner at global management consultancy Roland Berger, said China has pledged to deepen its opening-up policy and welcome foreign investment in areas that were previously restricted.

For example, the Ministry of Commerce announced earlier this month that China plans to allow wholly owned foreign hospitals in Beijing, Shanghai and seven other cities or regions.

"Recently, China opened certain areas of the culture and entertainment sectors to foreign investment. Similar policies have also been put in place in the finance sector," Jiang said. "The country's vast service market is clearly appealing to foreign investors, offering significant potential for foreign companies to succeed in China."

Ulrik Knudsen, deputy secretary-general of the Organization for Economic Cooperation and Development, said services are a crucial part of the digital and physical infrastructure that underpin supply chains. Lowering barriers can boost access to foreign investment, improve interoperability and encourage diversification of suppliers.

To achieve this, Knudsen said governments must collaborate to revitalize discussions on services trade, including initiatives for progressive liberalization through bilateral and multilateral services trade agreements.

Pointing out that the role of global agricultural and food supply chains in international trade has become more prominent, Ye Huiqing, vice-president of COFCO Corp, said the group will actively partner with international stakeholders, exploring new business models and formats for global trade, especially in the area of trade in services.

"We are committed to promoting digital and green global trade and structural reforms of the global agricultural and food industry," Ye said.

COFCO Corp, China's largest food processor, manufacturer and trader by sales revenue, will support the development of both upstream and downstream players in the agricultural and food industry, including small and medium-sized enterprises. This approach contributes to building an inclusive and equitable global economy, she added.

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