34 Departments Jointly Issued the 12th Five-Year Plan on Trade in Services

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34 Departments Jointly Issued the 12th Five-Year Plan on Trade in Services

The Plan stressed the need to develop trade in services so as to become a strong economy by 2015, with China's total import and export volume reaching 600 billion US dollars, achieving an annual growth of 10% .

34 departments including the Ministry of Commerce and Development and Reform Commission recently jointly issued The Twelfth Five-Year Plan on Trade in Service. The Plan stressed the need to develop trade in services so as to become a strong economy by 2015, with China's total import and export volume reaching 600 billion US dollars, achieving an annual growth of over 10%.

It is learned that Ministry of Commerce, the leader in drafting the plan, currently only issued the outline to local departments, the specific content of which has not been officially disclosed yet.

The Plan stressed the need to develop trade in services so as to become a strong economy by 2015, with China's total import and export volume reaching 600 billion US dollars, achieving an annual growth of over 10%. With the actual growth rate during the "Eleventh Five-Year" as a reference, to achieve such a growth rate does not seem difficult at all.

Statistics showed that during the “Eleventh Five-Year Plan" period, the total volume of import and export services increased from 157.08 billion US dollars in 2005( by the end of the “Tenth Five-Year Plan” period) to 362.42 billion US dollars, the amount is doubled, Among which the export of service increased from 83.17 USD to 192.17 USD. China's total service import and export volume world ranking rose from the No. 12 in 2000 to No. 4 in 2010.

Ministry of Commerce has expressed earlier that the training of the service trade industry in the future will focus on those closely related to strategic emerging industries such as information technology, biotechnology, high-end equipment manufacturing, new energy, new materials, and new energy vehicles, etc, and actively explore new areas of trade in services based on the development of productive service trade such as logistics and transport, finance, insurance , R & D , information consulting , and professional services.

In recent years although China’s trade in service has demonstrate a trend of rapid development, it accounts for only 10.9% of the total foreign trade volume, a ratio only about half of the global average.

At present, as a new powerhouse for economic development, the unprecedented attention has been given to trade in service. The outline of the 12th Five-Year Plan also mentions that we should promote export of services, open up our service industry wider to the outside world, and extend the service trade’s proportion in the foreign trade.

According to Qiu Hong, the assistant to the Minister of Commerce, that as the development of manufacturing industry further integrates with that of the trade in service, new demand, industrial and points of growth keep on emerging in the service industry and trade in service. Therefore, developing the trade in service will help to explore new points of economic growth.

Besides, it is also conducive to promote a balanced trade development. Qiu Hong said that currently China’s trade in service still takes up a relatively small proportion in the country’s total trade volume. One of the major tasks of China's foreign trade in the 12th Five-Year Plan period is to develop the trade in service, and promote a balanced development between the trades in goods and trade in services

It is also learned that the Ministry of Commerce is now working hard to introduce the Regulation on Promoting the Trade in Service, so as to provide legislative protection for managing and improving the trade in service. The highlight of the regulation is to develop and improve financial support policy for the development of trade in services, to investigate and set up special fund for trade in services, and increase financial support for the export of trade in service.

 

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