policy recommendations at China Services Trade international fair

context: Against foreign and domestic downsides, Beijing eyes services trade as a key driver of the economy. Setting sights on long-term growth, it views the sector as a ‘multiplier’: services exports support goods trade and value-added jobs in the slowing labour market, imports help bring in tech know-how and market discipline. But challenges remain, not least broader socio-economic barriers impeding reforms and geopolitical headwinds.

Wrapping up the China International Fair for Trade in Services, three PRC experts share their insights and policy recommendations

  • changing circumstances highlight the urgency to expand services trade cooperation, says Zhang Qi 张琦 State Council Development Research Centre deputy director
    • rapid digital technology and AI development
    • shocks to international economic and trade order
    • opportunity and challenges coexist for promoting service trade liberalisation and facilitation
  • the PRC needs to upgrade PRC services trade competitiveness, says Zhao Zhongxiu 赵忠秀 University of International Business and Economics president
    • acceleration of digital services trade development is a priority
    • integrate AI technology into services trade systems
    • active participation in international AI standard setting 
    • translate technological progress into inclusive and sustainable development momentum
  • future direction
    • the PRC should seize opportunities brought by digitalisation, smart tech and green transformation, says Long Guoqiang 隆国强 Development Research Centre senior research fellow and vice president
      • promote the innovation and application of digital technologies and AI 
      • improve digital economy governance
      • expansion of AI technology application scenarios
      • cultivate more technical talent
    • there are three major trends now
      • services trade becoming more important globally
      • digitalisation is a key driving force 
      • AI opens new growth frontiers ('new blue ocean') for services trade development
        • AI advances expected to enhance services trade in supply, demand and intermediary aspects
      • the PRC is advised to leverage these trends strategically
  • policy recommendations
    • regulatory and experimental measures
      • services trade supervision is complex due to diverse industry types, notes Zhang, who suggests
        • establishing digital trade sandbox mechanisms
        • trial implementation of cross-border data flow whitelists in free trade zones