A view of the cultural and tourism exhibition at the 2023 China International Fair for Trade in Services held in Beijing in September 2023. (PHOTO: VCG)

By CHEN Chunyou

The State Council announced a new plan on November 23 to open up the service sector wider. Plan 2.0 is a follow-up on a policy released in 2020, when Beijing became China's first integrated national demonstration zone for opening up the service sector.

Ling Ji, vice minister of commerce, said at a recent news briefing that the service industry, characterized by a wide range of categories, is an important area for building a higher-level, open economic system. The launch of a new round of pilot initiatives in the demonstration zone will help it align with international economic and trade rules, and promote a high-standard system for opening up the service industry.

Since 2015, China has selected 11 provinces and cities for comprehensive pilot programs to open up the service industry. Zhu Bing, director of the department of foreign investment administration at the Ministry of Commerce, said in the first three quarters of 2023, the added value of the service industry in these 11 provinces and cities reached 13.2 trillion RMB, accounting for 69.7 percent of the regional GDP.

Plan 2.0 will launch 170 pilot initiatives, notably more than before, and with greater openness and innovation, Ling said.

The objective is to construct a modern industrial system and optimize the overall ecosystem of industrial development. It will also deepen reform and opening up of the whole industrial chain in key areas such as telecommunications, healthcare, finance, culture and education, and professional services.

Specifically, Beijing will be supported to build an international information industry and digital trade port. It is expected to strengthen international cooperation in the digital field, promote the formulation of relevant international rules, and seek mutual benefits and win-win cooperation in cross-border transmission of data, security testing and certification of digital products.

In healthcare and medical services, Beijing will further the Belt and Road international cooperation project on health and WHO Collaborating Centre brand projects. Doctors from foreign countries, as well as Hong Kong, Macao and Taiwan will be supported to set up clinics in Beijing. International cooperation in stem cell and gene R&D will also be supported.

In addition, Beijing will be assisted to strengthen cooperation and exchanges with members of the Digital Economy Partnership Agreement in digital identity, digital inclusiveness, cybersecurity, fintech and logistics.

Trade and investment institutional arrangements will be optimized with rules that are in line with the innovative development of trade in services. Trade costs and barriers will be reduced and cross-border trade supervision improved. Cross-border capital flows will be facilitated and enterprises going global will be supported.

Beijing will get help to build a professional organization for the construction of the Green Silk Road. It will be encouraged to import and export environmental products and services, and carry out bilateral and multilateral cooperation projects in this sector.