Events

Executive Meeting of the State Council: Give Play to the Role of Service Trade in Stabilizing Foreign Trade and Foreign Investment

2020-8-4 9:55:37

Premier Li Keqiang presided over an executive meeting of the State Council on July 29 to make arrangements for further opening up and stabilizing foreign trade and foreign investment, and decided to deepen the pilot program of service trade innovation development.

　　It was pointed out at the meeting that stabilizing foreign trade and foreign investment was an important step in implementing the work arrangements to maintain stability in employment, financial operations, foreign trade, foreign investment, domestic investment and expectations of the CPC Central Committee and the State Council. The following aspects of work should be the focus to stabilize the main body of foreign trade and the supply chain of the industrial chain:

　　1 Supporting foreign trade companies to enhance their anti-risk capabilities

　　To solve the prominent problems such as the reduction of orders, effective measures should be introduced to support the enterprises to expand their market and increase orders. Export credit insurance should be utilized to actively protect the risk of order cancellation before shipment. "Credit insurance + guarantee" should be promoted to provide credit enhancement support for financing of foreign trade enterprises.

　　2 Encouraging the central, western and northeastern regions to make the best use of their advantages to undertake labor-intensive foreign trade industries

　　The development of new business forms such as cross-border e-commerce, overseas warehouses, and foreign trade comprehensive services should be supported and market procurement and trade mode pilots increased to drive exports of small, medium and micro enterprises.

　　3 Improving the policy environment to attract foreign investment

　　Key foreign investment projects should be treated equally to increase land use and other guarantees. The convenience of foreign-funded high-tech enterprise identification should be improved. Foreign-funded enterprises should be supported with the special quota of re-loan and re-discount and the export-import banks new loans at equal scale.

　　4 Giving full play to the role of service trade in stabilizing foreign trade and foreign investment

　　Combined with the regional development strategy, the pilot program of service trade innovation development should be expanded to 21 provinces across China. A higher level of opening up should be promoted by expanding open-up areas and improving convenience for reform and exploration, including developing cross-border commercial medical insurance, promoting Sino-foreign cooperation in running schools, expanding the scope of qualifications for technology importers and exporters, and strengthening international cooperation in tourism and sports under normalized prevention and control conditions.

　　Service trade has become a new engine for global economic growth

　　At present, as a new round of scientific and technological revolution and industrial transformation are booming vigorously, and the change of the manufacture industry toward servitization and the service sector toward digitization is accelerating, service weighs more and more in the global value chain. Thus, service trade investment and cooperation has become an important engine for global economic growth. According to the 2019 report of the World Trade Organization, the share of service trade in global trade has increased from 9% in 1970 to the current 20%. By 2040, this proportion is expected to rise to one third.

　　"Service from China" brings new opportunities to the world

　　China is now entering an era of service economy. In 2019, the added value of the service sector accounted for 53.9% of the total GDP, representing a contribution rate of 59.4% to the economic growth. China attaches great importance to the development of the service sector and service trade, as President Xi Jinping has repeatedly emphasized that China would open its door wider and wider. In the next 15 years, China will import services with a total value of more than USD 10 trillion, which will bring new opportunities to the world.

　　Global Services, Shared Prosperity

　　The 2020 China International Fair for Trade in Services (the 2020 CIFTIS) will be held in Beijing in September with the theme of "Global Services, Shared Prosperity”. As one of the three major exhibition platforms representing Chinas opening to the outside world, the CIFTIS plays an important role in disseminating ideas, connecting supply and demand, sharing business opportunities, and promoting common development in the field of international service trade. This event will set up a new platform for governments, international organizations, global service trade enterprises and institutions to display, communicate, negotiate, and cooperate with each other; form a new bridge for global exhibitors to share business opportunities and promote development together; and create a new channel for famous people from communities of politics, business, and academia to discuss hot topics of service trade and sustainable development and achieve win-win cooperation.