China released its first negative list for services trade, aimed to further improve the transparency and predictability of the business environment.
70 special management measures in 11 categories for overseas services providers are specified in the list of cross-border service trade in the Hainan Free Trade Port (FTP), said China’s Ministry of Commerce in a statement.
Domestic and overseas services providers will have a level playing field and enjoy equal market access in the port, for areas not included in the list, the statement added.
Vice Minister of Commerce, Wang Shouwen told press that the list serves as a major breakthrough in the management model of service trade.
He added that it’s an institutional [market] opening arrangement that will help promote the liberalization of service trade and enhance China’s overall opening level.
More than 60 percent of Hainan’s economy accounts service industry, led by tourism. According to Wang, the list was made in accordance with Hainan’s competitive edge. For example, foreign yachts entering and leaving the FTP will no longer have to apply for pilotage.
The list will come into effect on August 26.
Wang also mention that except for 2020, the global service trade growth rate is twice the pace of goods trade for the last decade.
Despite the COVID-19 pandemic shock, China’s service trade hit $661.7 billion in 2020, ranking second in the world. However, Wang cautioned that the volume still lags far behind the crown trader.
Wang further more added that among the 160 service sectors categorized by the World Trade Organization, China has exceeded its opening-up promise on Hainan’s negative list in around three-quarters of the sectors.
Wang also explained that Hainan was chosen as the first to implement the negative list on service trade because it is China’s largest special economic zone and holds a favorable geographical edge.
The list can be implemented with a high degree of openness and flexibility, and it’s convenient to conduct regulatory checks, said Wang.
Wang said “By accumulating experience and controlling risks in Hainan, we can accumulate experience and explore paths for the implementation of the negative list in a wider area in the next step,”.