China will open wider in several service industries to promote cross-border trade and investment, President Xi Jinping said in a video address to the 2023 China International Fair for Trade in Services (CIFTIS) in Beijing. The President said China would ease market access in the country’s service sector, promote the opening of the cross-border services trade and steadily expand “institutional opening-up”, a term that refers to reforming domestic standards to bring them in line with international norms. According to Xi, China will carry out negotiations on the so-called negative list for trade and investment in services and open wider in areas such as telecommunications, tourism, law and vocational examinations.
Zhao Xijun, Finance Professor at Renmin University in Beijing, said boosting the services trade and opening the sector would be a challenge for China as they involved different standards adopted by different countries and cultures. “China has a great market for various services, including telecoms, law, tourism and vocational exams. However, the government has a lot of work to do to align domestic standards with international norms,” Zhao said. “In addition, there are national security concerns to address. Before a full opening up of the service sector, a mechanism for dispute resolution must be worked out,” he said.
“China will stay committed to advancing high-standard opening up, pursuing Chinese modernization on all fronts with high-quality development and creating new opportunities for open cooperation across the world,” President Xi said. He reiterated China’s commitment to applying “high-standard international economic and trade rules” in certain demonstration zones, free-trade zones and free-trade ports as a way to boost openness in the services sector. Xi highlighted China’s plans for developing its service industry, such as promoting the integration of trade in services with the modern service industry, high-end manufacturing and modern agriculture. He also called for a national trading market for voluntary greenhouse gas emission reductions and the safeguarding of the free trade and multilateral trading system.
The government-sponsored China International Fair for Trade in Services (CIFTIS) is taking place in Beijing from September 2 to 6. The country’s trade in services grew 8.1% year-on-year to about CNY3.67 trillion in total value in the first seven months of this year, with the services trade deficit standing at CNY589.9 billion, according to the Ministry of Commerce (MOFCOM). Services exports declined 6.3% year-on-year to CNY1.54 trillion, while services imports stood at nearly CNY2.13 trillion, up 21.6% from a year ago, the South China Morning Post reports.
