Driven by a rapidly growing services sector, digital technologies, and its industrial chain advantages, China’s trade in services is poised to play a crucial role in boosting economic growth in the Asia-Pacific region and attracting foreign investment, according to economists and business leaders on Friday.
Unlike trade in goods, trade in services encompasses the sale and delivery of intangible services such as transportation, tourism, telecommunications, advertising, education, computing, and accounting.
Long Guoqiang, vice-president of the State Council's Development Research Center, stated that China will continue to engage more deeply in services trade within the Asia-Pacific region by leveraging its abundant high-quality workforce, digital technologies, the Regional Comprehensive Economic Partnership (RCEP), and international cooperation. Long made these remarks at a sub-forum of the ongoing 2024 China International Fair for Trade in Services in Beijing.
Echoing these sentiments, Vladimir Kazbekov, vice-president and chief operating officer of the Shanghai-based New Development Bank, highlighted China’s significant progress in liberalizing its services sector, which is creating new opportunities for growth and attracting foreign investment.
Wang Bo, deputy director of the department of trade in services and commercial services at the Ministry of Commerce, emphasized China’s commitment to expanding market access, aligning its regulatory frameworks with international standards, and implementing a negative list for cross-border services trade.
Similarly, Jiang Hao, a partner at global consultancy Roland Berger, noted that China is committed to further opening its markets and welcoming foreign investment in previously restricted areas. For instance, earlier this month, the Ministry of Commerce announced that China will allow fully foreign-owned hospitals to operate in Beijing, Shanghai, and seven other cities or regions.
"Recently, China opened certain parts of its culture and entertainment sectors to foreign investors. Similar steps have also been taken in the financial sector," Jiang explained. "China’s vast services market holds great appeal for foreign investors, offering significant opportunities for success."
Ulrik Knudsen, deputy secretary-general of the Organization for Economic Cooperation and Development (OECD), noted that services are a critical component of both the digital and physical infrastructure that support supply chains. Reducing barriers to service trade can increase foreign investment, enhance interoperability, and encourage diversification of suppliers.
Knudsen added that governments need to collaborate to revive discussions around services trade, including pursuing progressive liberalization through bilateral and multilateral agreements.
Ye Huiqing, vice-president of COFCO Corp, China’s largest food processor and trader, pointed out that global agricultural and food supply chains have gained greater prominence in international trade. Ye stated that COFCO will actively collaborate with international partners, exploring innovative business models and formats for global trade, particularly in services.
“We are dedicated to advancing digital and sustainable global trade, as well as reforming the global agricultural and food industries,” Ye said. COFCO will continue to support both upstream and downstream players in the agricultural sector, particularly small and medium-sized enterprises, contributing to a more inclusive and equitable global economy, she added.