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The Guiding Opinions proposes to support IT outsourcing, especially in such key areas as pharmaceuticals, design, accounting and legal services, and business operation outsourcing will also be supported. Could you please tell us about the development of services outsourcing in these areas? What role will such support play in making China strong in services? Thank you. (2020-1-17)

Your question relates to a crucial part in the Guiding Opinions. China鈥檚 services outsourcing development started from undertaking IT services outsourced from America and Europe. IT outsourcing is still in the majority, as I said, accounting for about 50% of the total. It also has some structural features. In 2018, software R&D services outsourced to China amounted to USD25.59 billion. The development and application of AI, Internet of Things, big data, 5G technology and the new-generation information technology provide broader room for IT outsourcing. In 2018, chip testing and design services performed in China amounted to USD6.56 billion, and IT operation and maintenance services undertaken by China amounted to USD5.23 billion. Cloud services outsourcing also grew rapidly. Major efforts to develop IT outsourcing and improve China鈥檚 IT level will help integrate IT application with industrialization, and the manufacturing sector with the services sector.

As you mentioned, professional areas such as pharmaceutical R&D, design, accounting and legal services, as well as business operation are also key areas for outsourcing development identified in the Guiding Opinions. These areas are crucial for faster transformation and upgrade of China鈥檚 outsourcing sector into a high-tech, high-added-value, high-quality and efficient sector. They play an important role in promoting high-quality trade development. Pharmaceutical R&D outsourcing is a model widely adopted by international pharmaceutical manufacturers in new drug R&D. It can help China follow the drug R&D developments of transnational drug makers and improve China鈥檚 drug R&D capacity. According to our statistics, China undertook USD5.12 billion of outsourced offshore drug R&D in 2018.

As regards design outsourcing, the driving force generated by the two wheels of services design and industrial design can empower the real economy, speed up the replacement of old growth drivers with new ones, and facilitate the upgrade from 鈥淢ade in China鈥to 鈥淐reated in China鈥 According to our statistics, in 2018, China undertook USD21.31 billion of outsourced offshore design services. The year of 2019 also saw rapid development of IT, drug R&D, design, accounting and legal services outsourcing. According to statistics on hand, the 2019 growth rate was over 10% based on what has been achieved in 2018. Therefore, rapid development of these areas is crucial for high-quality trade development.

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