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Development service trade
2020-11-11

Recently, the China State Council executive meeting has further expanded the work of opening up and stabilizing foreign trade and foreign investment. It has proposed that the role of trade in services in stabilizing foreign trade and foreign investment should be brought into full play. It will deepen the pilot projects for innovative development of trade in services, taking into account the regional development strategy, we will expand the service trade innovation and Development Pilot Program to 21 provinces and some regions of the country, and explore reforms to expand the scope of opening up and enhance the level of facilitation, this includes developing cross-border commercial medical insurance, promoting sino-foreign cooperation in running schools, expanding the scope of qualifications of Technology Import and export operators, and strengthening international cooperation in tourism and sports under normal control, so as to promote opening up to the outside world at a higher level. "high-quality economic development is reflected to a considerable extent in trade in services. The development of trade in services is an important measure to promote economic transformation and upgrading and high-quality development. Trade in services plays a leading role in the process of China's economic development from labor-intensive and scale-oriented to technological, service-oriented and standard-oriented. The pilot project of innovative development of trade in services is conducive to promoting high-quality development of China's trade in services,"Teruo Nakamura, a member of the Expert Committee of the CCPIT and chief expert of the Beijing University of International Business and Economics, told China trade daily, first of all, expanding the service trade innovation development pilot can explore a service trade innovation development path that is in line with China's national conditions; second, it is conducive to promoting e-commerce, big data and other new forms of business innovation, and Service Sector Development Model Innovation; then, regional growth poles can be cultivated to play an important role in promoting local economic development and nurturing new growth poles of service trade. "The pilot project on innovative development of trade in services is in line with China's path of gradual opening-up, which is to try first and replicate the experience, " said Luo Libin, a visiting researcher at the Beijing International Studies University and Public Policy Research Institute of Tsinghua University and Deputy Director of the Faculty of Economics, Ljubljana, the expansion of the opening up of the service sector, the rapid development of the service trade and the increase in the proportion of the service trade are all in line with the new trend of China's economic development. At this stage, the development of the service trade is of great importance to enhancing the competitiveness of China's service sector and consolidating the competitiveness of the manufacturing sector, it is of great significance to exert the gravitational effect of the domestic large market on the international factors of production. Liu Xiangdong, an associate research fellow in the Economic Research Department of the China Center for International Economic Exchanges, said that the service trade innovation and development pilot project will follow the way of first trying and then gradually extending to the whole country. On the one hand, it can prevent and control risks, to avoid a one-size-fits-all approach. On the other hand, local innovation can be encouraged to stimulate the vitality of local economic development, which is more conducive to each region to play its unique advantages and find innovative development ideas of service trade. It is understood that in 2016, the State Council approved the approval of 15 regions in Shanghai, Hainan and other regions to carry out services trade innovation and development pilot. In June 2018, the State Council approved the deepening of the pilot program, which will be extended to 17 regions including Beijing and the Xiongan new area. Li Chunding, a professor and director of the Institute of International Economics at China Agricultural University, said that the two rounds of service trade innovation development pilot projects from 2016 to 2018 and 2018 to 2020 have promoted the development of China's service trade, it has brought many new changes to the development of China's service trade. First, we have accelerated the growth of trade in services by opening up trade in services and enhancing the level of trade facilitation. Since 2016, the growth rate of China's service trade exports is not only faster than the international average level, but also faster than the growth rate of goods exports. Second, the competitiveness of trade in services has been enhanced, and the deficit in trade in services has been reduced significantly. Third, it promotes the upgrading of service industry and the improvement of service trade quality, and the knowledge-intensive service trade with high added value and high technology content is growing rapidly. Fourth, it has deepened the opening-up of service trade and promoted the construction of a new pattern of opening-up of service trade. Data from the Ministry of Commerce showed that in 2019, service imports and exports accounted for more than 75 percent of the national total in the service trade innovation development pilot areas, and the development speed was faster than the national average. Led by the pilot regions, China's total services imports and exports increased from us $654.2 billion in 2015 to US $785 billion in 2019, an average annual growth of 4.7 percent. At the same time, the service trade innovation pilot projects have helped to accelerate the growth of new forms and modes of service trade with high growth and added value, and the transformation and upgrading of industries and trade have been further accelerated. Data show that in the first five months of this year, China's total imports and exports of knowledge-intensive services reached us $115.31 billion, up 4.7 percent year-on-year and accounting for 43.3 percent of the total. Referring to the role of deepening the pilot project of innovative development of service trade in stabilizing foreign trade and stabilizing foreign investment, Li chunding said that service trade is an important component of China's foreign trade. Although the proportion is far lower than that of goods trade, there is great room for its future growth, deepening the service trade innovation and development pilot is conducive to the stability of foreign trade. At the same time, to expand the opening of the service sector and institutional innovation is conducive to attracting the inflow of foreign investment in the service sector and stabilizing foreign investment. In addition, tourism, transport and other traditional services are affected by the epidemic, through the deepening of innovative development pilot will be conducive to the growth of trade in services. Luo Libin believes that the service trade innovation and development pilot areas from the geographical scope to the opening are constantly expanding, on the one hand to provide more opportunities for foreign service enterprises, on the other hand, it also shows that China is determined to promote a higher level of opening to the outside world and give foreign-funded enterprises a more certain expectation, which is helpful to stabilize foreign trade and stabilize foreign investment at present. In Liu Xiangdong's view, both the pilot areas and the pilot free trade zone are open to the service sector in a way that leads the country in both scope and degree, for example, the FTA negotiations have paid more and more attention to the opening up of the service sector. The pilot free trade zones and pilot areas are the test fields for China to explore the opening up of the service sector to the outside world. The positive results of the pilot areas can provide experience for multilateral and bilateral negotiations, promoting the establishment of a high standard Free Trade Area Network between China and other regions and the formation of an integrated service trade and market in multilateral and bilateral negotiations will also help optimize the new pattern of China's opening up to the outside world.


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