Liu Haiquan, the Assistant Minister of Ministry of Commerce: China’s Service Outsourcing Industry Enters into Golden Period
Source: www.ftchinese.com View: 223 Date: 2015-09-25

"In 2014, proportion of China’s service outsourcing trade accounted for 30% of global amount; and China’s service outsourcing industry has entered into golden period.” The assistant minister of Ministry of Commerce indicated at the 7th ChinaSourcing Summit organized in Hangzhou on September 24th, 2015.

Since financial crisis, global good trade and multinational investment of manufacturing continued depression; however, investment for cross-over trade of service industry keeps rapid development. According to data from Ministry of Commerce, during the period from 2008 to 2014, the export amount of global service trade has increased from 398 million USD to 494 million USD; the annual growth is 3.7% and 2.7% higher than amount of goods trade at the same time. The proportion of multinational investment form service field reached 70%; therefore, multinational companies rapidly transfer modern service industries such as R & D, counsltant, information service and etc. to developing countries.

Under the international background, China’s service trade has rapidly developed. Service industry has become important support for economic development in China. In 2014, GDP per capita in China exceeded 7,500 USD; service industry entered into rapid development period. Since 2012, the growth of increasing added-value in China’s service industry has been constantly higher than the second industry. In 2013, the added-value of China’s service industry exceeded the second industry at first time. In the half of 2015, added-value of service industry has reached near half of GDP. Under such trend, China’s service outsourcing industry has entered into golden period of development. According to introduction from Liu Haiqun, from 2008 to 2014, implementation amount of offshore service outsourcing undertaken by China’s service outsourcing enterprises had increased from 4.7 billion USD to 55.9 billion USD; the proportion of global service outsourcing market share also had increased from near 7.7% to near 30%. During the period from January to August, the implementation amount of offshore service outsourcing undertaken by China’s service outsourcing enterprises has been 35.7 billion USD, which increasing 10.3%.

"At the same time expanding scale, business structure of service outsourcing has obviously changed. KPO with feature of knowledge and R & D continually innovates service models; and its international competitiveness also has been obviously improved” indicated by Liu Haiquan, “to further expand opening-up will explore new space for next development of service outsourcing”.

In Liu Haiquan’s opinions, China is building opening economic new system to promote service industry including finance, education, culture and medical orderly opening. “The Guidance Catalogue of Outsourcing Investment Industry” published in 2015 has reduced 50% or more of restricted items; canceled and loosened requirement for e-commerce, transportation and other service industries; and made construction design and pension agencies into encouraged list; Shanghai and other Free Trade Pilot Zones has implemented management mode of national treatment +negative list before foreign investment entering into market. At the beginning of 2015, the State of Council published “The Policy Measurement of Promoting Rapid Development of Service Outsourcing Industry”. All of these above measurements and policies will provide better conditions for service outsourcing industrial development. Meanwhile, the planning of internet +activities will also expand scope and value of service outsourcing.

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