Golden season for service industry
China’s service outsourcing business will see its golden season in the coming decade with more policy support and further upgrades to the nation’s industrial portfolio, a senior commerce official said.
Further driving up the service outsourcing industry carries great significance to the country’s ongoing supply-side reform and the segment will witness even stronger growth momentum in the next decade, especially for high-end outsourcing businesses, Wang Shouwen, vice-minister of commerce, told the China Sourcing Summit 2017 in Hangzhou on Friday.
The country’s service industry has been contributing to more than half of the country’s economic growth during the first half of 2017, reaching 51 percent of GDP. Outsourcing services — in which a company contracts part of its existing internal activity to another company — created 1.21 million new jobs in China last year, with a total of 8.6 million people employed in the sector.
“Driving up the service outsourcing industry is a national strategy. It is also part of China’s efforts to attract more foreign direct investment. Relevant companies will enjoy more preferential taxation policies,” Wang added.
The State Council, China’s Cabinet, announced this year a slew of new measures to further boost trade in services, which include extending tax breaks to more leading service outsourcing cities, reducing restrictions on investment, and encouraging more overseas talent to work in China.
The total value of service outsourcing contracts signed by Chinese corporates in 2016 was 1.02 trillion yuan ($152.9 billion), up 20.1 percent yearon-year.
Wang Shouwen,
The mayor of Hangzhou, said the structure of city aims to develop the most the industry, featured and high-end outsourcing of business, with course, has e-commerce, information and to be further telecommunication sectors as finetuned priorities. and In fact, high-end service outsourcing upgraded, businesses also mean similar to a lot to multinational companies many other such as Haier, which industries spends nearly $500 million of China subject to supply-side every year on quality outsourced reform, Wang added. information and
Combining digital technologies designing services. with service outsourcing “In fact, we want to jointly business has become the next explore business opportunities growth engine for the industry, and make innovations with and it is the right timing for our outsourcing suppliers and relevant Chinese companies to global talents,” Howard Yin, undergo a digital-oriented CIO and CDO of Haier Group, transition, said Zhong Boming, said at the summit meeting. president of Hangzhou
Service and Trade Association.
Xie Shuangcheng, vice- Liu Yukun contributed to the story.