context: From 2015-21, the total trade in services between the PRC and BRI (Belt and Road Initiative) countries grew by 5.8 percent annually and reached US$ 670 bn, accounting for almost 14.7 percent of the total PRC services trade. Of this, the digital services trade accounted for 63 percent of the total trade in services in 2021. The services trade will likely remain an important driver of BRI economic cooperation, given its growing importance for digital trade and e-commerce. Expect more initiatives in this area to be introduced by Beijing and its partners.
Greater cooperation in the services trade under the BRI (Belt and Road Initiative) can help member countries upgrade their service industries, argues Long Guoqiang 隆国强 State Council Development Research Centre deputy director. He contends that the services trade is green and has high added value and strong spillover effects, which are important for the high-quality development and digital/green transformation in many countries.
As digital technology brings new opportunities for the services sector, Long identifies digital infrastructure construction, talent training and digital empowerment of traditional services industries as promising areas for future cooperation.
Yi Xiaozhun 易小准 former WTO deputy secretary-general also identifies digitisation as a key direction for the services trade. He outlines areas for institutional cooperation
- bilateral institutional arrangements for digital cooperation with BRI countries to foster a better policy environment for e-commerce and digital cross-border flows
- the PRC can provide technical assistance and capacity-building services to BRI countries to share its experiences
- in risk management the PRC can
- take the initiative to align trade rules in its pilot free trade zones with CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and DEPA (Digital Economy Partnership Agreement)
- work with other BRI countries to
- improve information collection, data management and monitoring systems
- address key issues in digital supervision, core technology and cross-border data protection
- build a risk management mechanism in digital trade