China will work to further boost its fledgling service industry, said speakers at the ongoing world service trade forum in Shanghai Thursday.
The two-day forum, organized by the Ministry of Commerce and the Shanghai Municipal government, attracted senior executives and leaders of service industry from more than 20 countries and regions worldwide.
In a speech delivered at the forum, Commerce Minister Bo Xilai said the Chinese government aims to give priority to service sector development. He pledged to devote more effort towards attracting international service giants.
"We will endeavor to further improve China's service sector and turn China into a popular out-sourcing option in global service trade," said the minister.
China's service industry, which has grown tremendously in the past two decades, still fails to contribute substantially to the national economy.
According to statistics from the ministry of commerce, China's service trade amounted to US$4.6 billion in 1982 and stood at US$128.6 billion last year, ranking the ninth worldwide.
However, the country's service export only accounted for a mere 9 percent of the national export total, far lower than the global average of 19 percent.
Meanwhile, China has been consistently pestered by a deficit in its service trade, with red ink in this regard amounting to US$10.8 billion in 2004.
Currently, China's most developed service industries still fall in the traditional categories of tourism and sea transportation. It will take time before China can assume truly significant roles in the world financial, insurance and computer sectors, according to Bo.
In order to sharpen China's competitive edge in the service industry, Bo vowed to encourage innovation and competition. He said the government needs value of training professionals in the field.
According to the minister, China has been focusing on attracting foreign investors to manufacturing industries in the past two decades. It plans to open the door wider to those who would like to enter China's service market.
He also singled Shanghai out as an engine in developing China's service industry.
As the most developed region nationwide, Shanghai now reports a per capita gross domestic product of US$6,700 and its service industry contributes 48 percent to the municipality's total economic output.
"We are confident in further developing Shanghai's service industry in the years to come as the city has made it clear to become an economic, financial, trade and transportation hub worldwide," said Bo Thursday.
(Xinhua News Agency June 10, 2005)
