Work Together to Boost Global Trade in Services

Work Together to Boost Global Trade in Services*

September 4, 2020

China International Fair for Trade in Services (CIFTIS) is a large exhibition and trading platform dedicated to trade in services. This comprehensive, state-level event has a global reach and has been held six times since 2012. We hope that this year’s CIFTIS, whose theme is “Global Services, Shared Prosperity”, will present an opportunity and serve as a platform and a bridge for people from across the world to fully showcase new progress and breakthroughs in services trade, and share in new technologies and the benefits of human progress. We hope that through in-depth exchanges and closer cooperation, you delegates participating in the event will contribute your wisdom and energy to expanding cooperation on trade and investment in services and invigorating economic and social development.

Our world is going through change on a scale unseen in a century, and the Covid-19 pandemic is accelerating this process. There is a backlash against economic globalization; protectionism and unilateralism are on the rise; the world economy is stagnating; international trade and investment have slumped. Such are the unprecedented challenges and tests that humanity faces.

That said, let us not forget that a new revolution in science, technology and industry in recent years has spurred a boom in digital technologies, led to deeper industrial integration, and allowed the service economy to flourish. During this pandemic certain services have become widely used: telemedicine, e-learning, sharing platforms, cooperative office systems, and cross-border e-commerce, to name just a few. They have played an important part in ensuring economic stability in all countries and promoting international cooperation against Covid-19. Going forward, open cooperation in the services sector is becoming an increasingly important driver of development.

Here, I would like to take this opportunity to share with you three proposals:

First, let us work together to foster an open and inclusive environment for cooperation.

A review of human history shows that the global economy thrives in openness and withers in seclusion. The services sector is unique as it is asset-light but heavy in soft factors of production. As such, it requires more than other sectors an open, transparent, inclusive and nondiscriminatory environment, to allow businesses to grow. It calls for the concerted efforts of all countries to reduce border and behind-the-border barriers constraining the flow of production factors, and promote cross-border connectivity. China will remain steadfast in opening up wider to the world. We will continue to work on a negative list system for managing cross-border trade in services. We will develop open platforms to pilot innovative development in services trade. We will further ease market access for the services sector and increase imports of quality services. To meet the actual need for growing trade in services, China will promote greater harmonization of rules for the services sector at multilateral and regional levels, and work for continued improvements in global economic governance and more inclusive global economic growth.

Second, let us work together to unleash the power of innovation in driving cooperation.

We need to adapt to the trend towards digital-driven, internet-based and smart growth, jointly eliminate the “digital divide”, and advance the digitalization of trade in services. China will continue to build bases for exporting particular services and develop new business forms and models in services trade. China will work with other countries to strengthen macro policy coordination, accelerate international cooperation in the digital sector, step up intellectual property protection, and facilitate the vibrant growth of the digital economy and the sharing economy. Our efforts will generate renewed dynamism in the global economy.

Third, let us work together to promote mutually beneficial cooperation.

In this age of economic globalization, countries share a new level of economic interdependency and interlinked interests. To treat each other with sincerity and pursue shared benefits holds the key to state-to-state relations in today’s world. Countries need to forge greater synergy in growing their trade in services, try to find new ways and identify more areas of cooperation, and look for the widest possible convergence of interests in development so as to steadily make the “pie” bigger. China will make full use of CIFTIS and other platforms, such as the China International Import Expo, to promote policy exchange and experience sharing, and foster diverse partnerships with foreign governments, international organizations, business associations, and enterprises. China supports the establishment of a global alliance for trade in services. We hope to see more tangible results from our practical cooperation, so that people in different countries will all benefit from growing trade in services.

To better leverage Beijing’s role in spearheading the opening up of China’s services sector, we will support the city in developing a national demonstration zone for greater openness in the services sector. It will enable Beijing to take bigger, bolder steps, and gain more experience that can be replicated and scaled up. We will also support Beijing in setting up a pilot free trade zone directed towards scientific and technological innovation, an open services sector, and the digital economy. It will serve as a platform for higher-standard opening up and coordinated development of the Beijing-Tianjin-Hebei Region, and create new and broader horizons for reform and opening up.

* Part of the speech at the Global Trade in Services Summit of the 2020 China International Fair for Trade in Services.

(Not to be republished for any commercial or other purposes.)