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[Yearly Overview XIX for Commerce Work in 2018] Development of Trade in Services and Commercial Services Reaches a New Level

In 2018, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping as the core, the Ministry of Commerce adhered to the general principle of seeking progress while ensuring stability, implemented new development visions, actively promoted the innovation and development of trade in services and commercial services, and achieved positive results in all work.

Pilot demonstrations stimulated the new driving force for the development of trade in services. The pilots for innovation and development in trade in services in the previous stage formed 29 pieces of experience which were replicated and promoted throughout the country with the approval of the State Council. In June 2018, the State Council approved the deepening of pilots, extended the time limit by 2 years, expanded the scope to 17 regions, and introduced 6 measures for facilitating opening up and 34 measures for safeguarding policies. It further explored the systems and mechanisms adapting to the innovation and development of trade in services, stimulated market vitality to the maximum extent and created the new highland of system innovation of trade in services. It established the dynamic adjustment mechanism for service outsourcing demonstration cities, and focused on promoting the agglomeration of service outsourcing industry and leading demonstration and business innovation.

The special service export base set up the new platform for the development of trade in services. In June 2018, together with the Publicity Department of the Communist Party of China Central Committee and other departments, the Ministry of Commerce confirmed the first 13 national cultural export bases, improved the quality and efficiency of Chinese culture鈥檚 going global, and promoted the high-quality development of outward culture trade. At the same time, we have actively researched and built the digital service export base and the tradition Chinese medicine service export base.

Promotion policies enhanced the new advantages of the development of trade in services. With the active support and joint efforts from the Ministry of Finance and other departments, the preferential policy for the income tax of technologically advanced service enterprises has been implemented in the whole country; the guidance fund for innovation and development of trade in services has completed the first round of fund raising of 10 billion yuan, and the first group of supporting projects has been launched.

New progress was made in the construction of the trade in services statistics system. The Ministry of Commerce and the Bureau of Statistics jointly published the International Trade in Services Statistics Monitoring System, jointly studied and solved the loopholes and problems in key areas and continuously improved the accuracy and comprehensiveness of statistical data. The trade in services statistics monitoring system was improved, and the number of registered key enterprises of trade in services rapidly increased to 14,000. We further enhanced the ability and level of the statistics work of local trade in services, and provided the training of trade in services for more than 8,000 people in 29 provinces and cities.

New breakthroughs were made in international market expansion. We successfully held the Trade in Services Session of the first China International Import Expo, the China (Beijing) International Fair for Trade in Services and the China (Shanghai) International Technology Fair. We increased support for non-commercial overseas exhibitions and optimized overseas layout. We reached trade in services cooperation initiatives with Central and Eastern European countries, and signed memorandum with seven countries including Japan, the United Kingdom, and Russia. The number of the countries with which we established cooperation mechanisms of trade in services increased to 14.

Service consumption achieved new improvements. We formulated and implemented the guidelines for the construction of urban and rural convenience consumption service centers, introduced guidelines for the construction of the life service centers for community, neighborhood, and the countryside, , guided local governments to build 200 urban and rural convenience consumption service centers and improved urban and rural life service functions. We formulated guidelines for the construction of green catering entities and established 40 green catering enterprises. We advanced the construction of 鈥渨orry-free housekeeping鈥 established the housekeeping service enterprise and personnel credit file, established and improved the joint punishment mechanism for credibility loss, and created favorable environment for safe consumption and satisfied consumption.

Poverty alleviation through housekeeping entered onto a new stage. On the basis of the pilots of poverty alleviation through housekeeping in 鈥00 cities and 10,000 villages鈥 we comprehensively pushed forward the work of poverty alleviation through housekeeping. We organized the synergy on supply and demand among 247 housekeeping enterprises in 109 central cities and national poverty-stricken counties. Together with the United Nations Development Program, we established housekeeping labor output base in Anhui and other places. We further optimized the commercial insurance policy on poverty alleviation through housekeeping, significantly reduced insurance premium rate and expanded insurance coverage. By the end of 2018, poverty alleviation through housekeeping has created more than 100,000 new jobs.

Under the joint efforts of all regions, departments and enterprises, China鈥檚 development of trade in services and commercial services in 2018 maintained a sound development momentum, mainly showing the following features:

First, the import and export of services maintained rapid growth. In January-November, 2018, China's total import and export of services was 4741.4 billion yuan (RMB, the same below), up 11.5% year on year. Among these, the export was 1580.3 billion yuan, up 14.7%; the import was 3161.1 billion yuan, up 10%.

Second, the growth rate of the export of services continued to be faster than that of the imports of services. As the influence of the "Chinese Service" national brand gradually improved, China's export capability of services has been significantly enhanced. In January- November, 2018, the growth rate of the export of services was 4.7 percentage points faster than that of the imports of services, reaching a record high. The export of services accounted for 33.3% of the total import and export of services, an increase of 0.9 percentage points over the same period of the previous year.

Third, the import and export of knowledge-intensive services grew rapidly. In January- November, 2018, the export of knowledge-intensive services was 777.7 billion yuan, up 26.2%; the import was 735.7 billion yuan, up 15.6%. The rapid growth of the import and export of knowledge-intensive services indicated that China's demand for high-end productive services continued to grow, it also indicated that China's scientific and technological innovation capabilities were gradually improving.

Fourth, the proportion of service consumption increased, and the consumption upgrading was accelerated. The change of consumption mode from tangible goods to intangible services has become an important trend. In the first three quarters of 2018, service consumption accounted for more than half of household consumption, reaching 50.2%, an increase of 0.5 percentage points over the same period of the previous year. In January-November, 2018, the national catering revenue was 3829.4 billion yuan, up 9.5% year on year.

2019 marks the 70th anniversary of the founding of the People's Republic of China and is the crucial year for securing a decisive victory in finishing the building of a moderately prosperous society in all respects. The Ministry of Commerce will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly implement the decisions and deployment of the CPC Central Committee and the State Council, uphold the "people-centered" development philosophy, implement the new development vision, promote the high-quality development of trade in services and commercial service industry, and strive to build the "Chinese Service" national brand, and make a positive contribution to completing the building of a moderately prosperous society in all respects.

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