China International Fair for Trade in Services (CIFTIS) 2020 continues today in Beijing.
With companies from 148 countries participating, the Chinese government has focused this year’s CIFTIS on digital economies. Promoting the service industry’s contribution in GDP growth has been one of China’s core economic reform policies for decades. In recent years, the strategy highlighted the promotion of its telecommunications companies, especially Huawei’s 5G technology.
In 2019, the service industry made up 83% of Beijing’s GDP, 30% higher than the national average. Facing US sanctions on its flagship digital service companies, China hopes the city’s performance in the fair could enhance the confidence of its trade partners. Expect Beijing’s newly announced role as a “National Service Industry Development and Open-up Demonstration Zone” to provide further policy benefits for the capital, which could include lower market access standards, immigration benefits for experienced foreign personnel and foreign direct investment in education, medicine, tourism and finances. In the coming years, Beijing will likely join Guangzhou and Shanghai as a third pillar of China’s foreign trade.
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