Foreign Companies Optimistic about China’s Expanding Services Market
Foreign Companies Optimistic about China’s Expanding Services Market

Foreign Companies Optimistic about China’s Expanding Services Market

Foreign executives and experts have expressed growing confidence in China’s business environment following President Xi Jinping’s recent push for greater openness in the services sector and global cooperation to drive economic recovery and foster innovation.

During the 2023 China International Fair for Trade in Services held in Beijing, foreign business leaders discussed the increased opportunities arising from China’s commitment to further opening up its market.

President Xi addressed the Global Trade in Services Summit through a video link on the opening day of the fair, emphasizing China’s dedication to inclusive development through openness, cooperation, innovation, and shared services. This commitment aims to contribute to global economic recovery.

As China’s services sector evolves towards a more open, cooperative, and innovative path, foreign company executives are optimistic about the immense prospects offered by China’s vast market and favorable business environment.

Jack Chan, Chairman of EY China, highlighted China’s role as a driver of global consumer demand, underlining its economic resilience and contribution to global growth.

In the first half of 2023, China’s trade in services achieved remarkable results, ranking among the world’s leaders. This success is attributed to significant economic structural adjustments and the upgrading of industrial composition.

According to the Ministry of Commerce, in the first seven months of the year, China’s trade in services exhibited steady growth, reaching a total value of 3.67 trillion yuan ($505.4 billion), an 8.1 percent increase year-on-year.

Chan emphasized that China’s deepening openness in the services sector serves as a crucial element in its domestic economic development. The growth of trade in services, driven by decarbonization and digitalization, sets an example for the rest of the world.

China is planning to accelerate the development of new drivers for digital trade in services, implement pilot reforms in basic data systems, and promote digital trade through innovative approaches. Additionally, the country is set to establish a national voluntary greenhouse gas emission reduction trading market and enhance the services sector’s role in green development.

Jiang Xiaojuan, President of the China Society of Industrial Economics, noted that digital globalization has given rise to a new form of services trade, capable of reducing cross-border transaction costs and enhancing international trade efficiency. China’s digital service providers are highly competitive in this global context.

Norman Sze, Vice-Chair of Deloitte China, praised President Xi’s commitment to profound reforms through high-level openness and the advancement of a new development pattern. Under this pattern, domestic and international markets complement each other, with the domestic market taking precedence.

China plans to boost domestic demand, strengthen its domestic market, increase imports of quality services, and encourage exports of knowledge-intensive services, according to Xi’s statement.

Sze stated that this approach aligns with collaborative efforts to stimulate global economic recovery and growth, playing a crucial role in promoting higher-level global openness.

Mohammed Al Ajlan, Deputy Chairman of Ajlan & Bros Group, expressed enthusiasm for participating in the CIFTIS for the second consecutive year and the potential for deeper cooperation with Chinese companies. Al Ajlan highlighted areas such as 5G, artificial intelligence, big data, biotechnology, fintech, and automation as promising fields for collaboration between Saudi and Chinese businesses.

Jin Zhongxia, Head of the International Department of the People’s Bank of China, emphasized the country’s commitment to further financial sector opening-up at a higher standard. This includes improving the management model, optimizing the business climate, and strengthening regulatory capacity to manage risks in line with increased openness.


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