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China to boost outsourcing industry

Updated: Nov 27,2014 10:50 AM

China will accelerate the development of the service outsourcing industry to create new advantages in foreign trade, the central government announced at an executive meeting of the State Council on Nov 26.

“We used to offer labor for others in the global industrial chain,” said the Premier at the meeting. “We will now offer not only labor but also wisdom”.

Premier Li said the service outsourcing industry is an important sector in China’s economic restructuring, and it also plays an essential role in the country’s industrial upgrading.

The Premier said that many of those who participate in service outsourcing are small, medium, and even micro enterprises, and many university graduates were attracted to the industry and have started their own businesses.

He added that accelerating the development of the industry will also boost public entrepreneurship and innovation.

Li urged officials to be open-minded, and called on relevant departments to offer more real policy benefits.

In 2009, the State Council listed 21 service outsourcing demonstration cities offering tax benefits for firms with advanced technologies, the Premier said. Many businesses were delighted to get such benefits.

Dismissing old vague policies, Li called for innovation and new measures to promote the development of the outsourcing industry.

Li also called for the expansion of successful outsourcing pilots — and benefits for businesses — adding that such pilots should be extended to more cities, so as to create a more complete and coordinated outsourcing industry.

Li expressed support for the proposal that the financial industry should also develop its own service outsourcing, in addition to providing convenient financing for the development of the service outsourcing industry.

“We used to think that service outsourcing was about telephone services and international communication services. Now, many new technology and R&D industries have also become important participants in service outsourcing,” said Li. “The policy we made today should leave enough space for future innovation.”

The Premier said government departments should increase outsourcing to service providers — as long as the country’s security is not harmed.

“It will further the opening-up of the Chinese economy, in addition to promoting economic restructuring and upgrading and innovation,” he said.