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PEOPLE鈥橲 REPUBLIC OF CHINA


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2014 Business Review XXII: Innovate Support Policies to Promote Breakthroughs in Trade in Services
  

In 2014, MOFCOM made active efforts to perfect the support policies system on trade in services, build a market environment of fair competition and raise trade in services into a new step. In 2014, China鈥檚 trade in services maintained steady growth with a total import and export value of US$604.34 billion, up 12.6% year on year. Among others, export registered US$222.21 billion, up 7.6%; import registered US$382.13 billion, going up 15.8% year on year; the import and export of trade in services took up 12.3% of the total with 0.8 percentage points higher than that of last year. Service outsourcing sustained rapid growth. In 2014, the contract value and executed value of China鈥檚 contracted international service outsourcing stood at US$71.83 billion and US$55.92 billion, going up 15.1% and 23.1% respectively. By the end of 2014, the service outsourcing industry had created jobs for 6.072 million people including 4.047 million with college (including junior college) education or above, accounting for 66.7% of the total employees.

I. Strengthening top-level design to boost major breakthroughs in policies innovation on trade in services

Firstly, strengthening the top-level design of trade in services. MOFCOM drafted the Opinions on Accelerating the Development of Trade in Services (hereinafter referred to as the Opinions) on behalf of the State Council. The Opinions has been reviewed and passed at the 78th executive meeting of the State Council on January 14, 2015 and will be issued in form of the State Council document.

Secondly, perfecting supportive policies of trade in services. The trade in services was incorporated into Some Opinions on Supporting the Steady Growth of Foreign Trade Issued by the General Office of the State Council and Some Opinions on Strengthening Import Issued by the General Office of the State Council for the first time. MOFCOM also worked with the Export-Import Bank of China to conduct the declaration of 鈥渕ajor projects and businesses in trade in services supported by finance鈥 Efforts were made to compile and study on the Guidance Catalogue on Key Service Exports.

Thirdly, strengthening the construction of service trade promotion platforms. The 3rd China (Beijing) International Fair for Trade in Services (hereinafter referred to as Beijing Fair) was successfully held and a landscape of fairs for trade in services led by the Beijing Fair and supported by various professional fairs came into being preliminarily.

Fourthly, positively engaged in bilateral cooperation in trade in services. The 2nd Group Meeting of the China-Singapore Trade in Services Cooperation Promotion Working Group was held. We reached consensus with the U.S. on conducting China-US dialogue on trade in services cooperation and listing it into the fruits of the China-U.S. Joint Commission on Commerce and Trade.

Fifthly, improving the statistical system of trade in services. Statistical data of trade in services was incorporated into the Statistical Communique of the People鈥檚 Republic of China and China Statistical Yearbook for the first time. MOFCOM worked with the National Bureau of Statistics to revise and issue the Statistics System of International Trade in Services. The Statistics Catalogue of Import and Export of Cultural Products and Services was revised.

II. Innovating development ideas to accelerate the development of key areas in trade in services

Firstly, rendering great support to service outsourcing industry. Efforts were made to issue the Opinions of the State Council on Accelerating the Development of Service Outsourcing Industry. MOFCOM worked with the Ministry of Finance to release policies of promoting service outsourcing development by using export credit, and issue the Notice on Perfecting the Income Tax Policies of Service Enterprises with Advanced Technology, popularizing the Suzhou Industrial Park鈥檚 pilot policies around 21 exemplary cities; MOFCOM also issued the Opinions on Innovating Talents Training Mechanism for Service Outsourcing and Raising the Ability of Service Outsourcing Development together with the Ministry of Education.

Secondly, advancing Chinese culture to 鈥済o global鈥 MOFCOM issued the Opinions of the State Council on Accelerating the Development of Foreign Trade of Cultural Products with the Publicity Department of the Communist Party of China, issued the Catalogue of Key Enterprises in National Culture Export 2013-2014 and the Catalogue of Key Projects in National Culture Export 2013-2014, promoted to release the Notice on Supporting the Income Tax of Culture Service Export and helped to finish the Notice on Adjusting Export Rebate Rate of Some Products, increasing the export rebates of 28 culture products to 17%. The Guideline of Foreign Culture Trade Practice 2014 was compiled.

Thirdly, strengthening technology trade promotion. The 2nd China (Shanghai) International Technology Fair was held. Efforts were made to organize enterprises to carry out China-EU technology trade exchanges activities in North Europe, and sign the MOU on Conducting Technology Trade Exchanges and Cooperation Activities with the Finland Ministry of Economy and Employment.

Fourthly, promoting carrier construction of traditional Chinese medicine service trade. MOFCOM and the State Administration of Traditional Chinese Medicine jointly studied on confirming some key regions and enterprises for traditional Chinese medicine service trade pilot. Work was done to engage in the theme day activity of Beijing Fair and issue a catalogue of key regions and enterprises. Efforts were made to study on expansion planning for the traditional Chinese medicine to serve for international market and further the statistical work of traditional Chinese medicine service trade.

Fifthly, improving supportive policies of international freight forwarding industry. Efforts were made to step up the Announcement on the Value Added Tax Concerning International Cargo Transport Service. Work was done to attend the 11th Sino-International Freight Forwarders Conference, and the daily coordination work of the working group of developing cross-border potential under the mechanism of SCO members trade ministers meeting was well done.

In 2015, the Ministry of Commerce will follow the trend of accelerating the development of the domestic service sector and cross-border transfer of the international service sector, seek opportunities to perfect supportive policies of trade in services, make active efforts to create an environment beneficial for trade in services development and promote breakthroughs in trade in services.

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