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Expanding access for foreign service businesses a priority

By WANG KEJU | China Daily | Updated: 2025-12-03 08:54
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China will expand market access for foreign businesses, with a particular focus on the services sector, as part of the efforts to widen high-standard opening-up during the coming 15th Five-Year Plan (2026-30).

In recent years, with market access restrictions on foreign investment in the manufacturing sector completely lifted, the services sector has become a priority in China's pursuit of high-standard openness.

Last year, some 70 percent of foreign investment into China went to the services sector. Trade in services exceeded $1 trillion for the first time last year, hitting a record high.

China will further lower market entry barriers for foreign investment, in accordance with the principle of "sooner rather than later, faster rather than slower", Commerce Minister Wang Wentao said at a news conference in October.

The country plans to expand pilot programs in service areas such as value-added telecommunications, biotechnology and wholly foreign-owned hospitals, Wang said, adding that China will also steadily expand the opening-up of the education and culture sectors.

"China's current population of over 1.4 billion, combined with the fact that the country's middle-income group is expected to exceed 800 million in the next decade, represents an enormous market potential," he said.

In April, policymakers unveiled a plan that aims to expand comprehensive pilot programs to accelerate the services industry's opening-up.

Since 2015, China has approved 11 provinces and cities, including Beijing and Hainan province, to carry out pilot programs, continuously expanding institutional opening-up with regard to rules, regulations, management and standards. The new plan added nine more cities, including Ningbo and Xiamen, to carry out comprehensive pilot programs.

"Opening up the services sector to greater foreign participation can help bring in cutting-edge technologies and management practices, which will spur the domestic industry to upgrade and enhance its overall competitiveness," said Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

Last year, the value-added of China's services sector accounted for 56.7 percent of GDP, an increase of 11.2 percentage points compared to 2012.

During the coming 15th Five-Year Plan, the focus on promoting the high-quality and efficient development of the services sector is expected to not only help unlock the vitality and innovation momentum of the services market, but also further consolidate its role as the primary driver supporting and propelling economic growth, Bai added.

China's greater openness in the service sector will translate into massive growth opportunities for global businesses.

China has become digital advertiser Criteo's third-largest market in the Asia-Pacific region and holds critical importance for its global strategy, said Szi-Wei Lo, executive managing director of Criteo for the Asia-Pacific region.

"We deeply understand both the opportunities and challenges Chinese enterprises face in their overseas expansion, and clearly recognize how the retail and e-commerce ecosystem is evolving at an unprecedented pace," he said.

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