Opening up of service sector brings new energy to Beijing’s economy
By He Yong from People’s Daily
By
expanding supply-side structural reform in the service sector, Beijing has
injected new energy into its economy since it became the first city in China to
carry out the pilot program of opening up the service industry in May, 2015.
During
the past four years, the city opened China’s first aircraft maintenance
joint-venture and the first foreign-invested securities company. In addition,
international rating agencies such as Moody’s, Standard & Poor’s and Fitch
Ratings have also established new legal entities in the Chinese capital.
Beijing
streamlined its administrative procedures of new business registration,
enabling the applicants to go through all formalities at one service counter
with one checklist, abandoning the old mode that required foreign enterprises
to go through business registration and filing at different administrative departments.
A
Germany-funded supply chain management company was one of the beneficiaries of
the innovation. “The new model saved us a lot of time. After we submitted
information to the commercial administrative department, the filing was
completed on the second day,” said an employee of the company.
In
addition, Beijing reduced unnecessary information that need to be submitted by
enterprises under the new model, slashing repetitive filing by 45 percent.
An
official with Beijing Municipal Commerce Bureau introduced that now the new
business registration model has been promoted nationwide.
Meanwhile,
Beijing has rolled out a dual-credit scheme to manage business
operations. Under the scheme, companies with good
credit will gain positive scores while those with bad credit will receive
negative scores.
By
adopting both online and offline statistical comparisons and targeted
monitoring for new investment, Beijing realized precise management of foreign
companies.
According
to third-party assessment, Beijing has created 68 pioneering and most effective
measures regarding openness expansion, trade facilitation, and environment
building of the service sector. These experiences were later promoted in other
regions of the country.
Driven
by the pilot program, Beijing’s service sector played a bigger role in boosting
the city’s general economy. In 2018, the added value of the sector accounted
for 81 percent of the city’s GDP, 3.1 percentage points higher than that in 2014
before the pilot program was carried out.
In
addition, the pilot program further energized the market. 640,200 enterprises
were established since the start of the program, an increase of 43.3 percent. 95.2
percent of these companies were in the service industry.
In
January this year, the State Council agreed to advance the comprehensive pilot
program for more openness of Beijing’s service industry, further expanding foreign
investment access to the sector.
It
also rolled out 14 measures in such areas as information, scientific research
and technology services, finance, commerce, culture and entertainment, and health
and social work.
“Beijing’s pilot program of opening up targets
at individual industries, and continuously expands the openness of different
industries. Such approach is more effective than building industrial parks, as
it helps build a relatively consistent market environment,” said Cui
Weijie, director of Institute of Industry Development and Strategy under the
Chinese Academy of International Trade and Economic Cooperation, Ministry of
Commerce.
Opening up of service sector brings new energy to Beijing’s economy
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