China Expands the Opening-up of the Services Sector in Four Regions

The State Council has approved the launch of three-year comprehensive pilot programs to expand the opening-up of the services sector in four regions. According to a circular released on 20 April 2021, the Tianjin, Shanghai and Chongqing municipalities, together with the province of Hainan, can proceed with 203 comprehensive opening-up trials in the services sector in the next three years. Back in 2015, Beijing was approved as China’s first pilot zone for services.

The four new pilot regions will mainly focus on the high-level opening up of key sectors, including scientific, business, logistical, financial and educational services. These new pilot regions are also supposed to complement each other by specializing in different areas.

• Tianjin: a nationally advanced manufacturing research and development base and an international shipping center in northern China
• Hainan: deepening economic reforms, by opening up the economy and building an international center of tourism
• Chongqing: attempting to build flourishing low-carbon and green industries and transform into a world-class land-based international logistics hub
• Shanghai: an international economic, financial, trade, shipping and scientific innovation center

The local authorities in these regions are required by the State Council to serve major national strategies and carry out differentiated explorations under the premise of secured risk control, aiming to create replicable practices in the development of a modern industrial system as well as a higher-standard open economy.

The circular also urged the Ministry of Commerce to work with other ministries/departments to strengthen guidance and coordination and evaluate results of the programs, ensuring to fully implement the reform and opening-up measures. Major problems in the pilot programs must be reported to the State Council.

In this table we will introduce the highlights of the opening-up trials in Shanghai

In the Report on the Work of the Government delivered at the Fourth Session of the 13th National People’s Congress of the People’s Republic of China on March 5, 2021 by Mr. Li Keqiang, Premier of the State Council, it is stated that China aims to open its services sector in a well-regulated manner, launch more comprehensive trials related to its opening, and formulate a negative list for cross-border trade in services. This circular released by the State Council on 20 April 2021 is in line with the aim of launching more comprehensive trials. We will keep you updated on the development of the aforesaid negative list for cross-border trade in services.