China is widening the doors of its service sector to foreign investors, aiming to boost economic stability and counter growing global protectionism. Officials announced on Monday that the country is expanding pilot programs to further liberalize its service industry.
Since 2015, China has approved 11 provinces and cities for service sector liberalization trials, easing market access and enhancing openness in regulations and standards. Now, nine more cities, including Dalian and Ningbo, will join the initiative.
Amid disruptions in global trade and supply chains caused by unilateral tariffs, China is accelerating its opening-up efforts. \”We will continue to open our service sector to respond to global trade fragmentation,\” said Ling Ji, China’s Vice Commerce Minister.
The government’s plan outlines 155 pilot tasks across sectors like telecommunications, finance, healthcare, culture, and tourism. Measures include lifting foreign equity caps in mobile app stores, allowing foreign doctors to open clinics, and permitting foreign-invested travel agencies to offer outbound tourism services in China.
In the financial realm, China aims to simplify cross-border investment and financing for multinational companies. \”We will leverage unified renminbi and foreign currency bank accounts to streamline trade and investment settlements,\” said Wang Xin, director of the research bureau at the People’s Bank of China.
The service industry remains a major attraction for foreign investment in China, accounting for over 70% of total inbound capital in the first quarter of 2023, according to the Commerce Ministry.
Having eliminated all foreign investment restrictions in the manufacturing sector, China is now progressively lowering market entry barriers in the service industry. The country is fast-tracking reforms focusing on market access, integration of manufacturing and services, and openness-driven progress.
\”With a vast market and immense growth potential in service consumption, China needs to expand high-quality service provision and embrace greater openness,\” Ling emphasized.
