(ATF) Shanghai is to lead the way with a pilot project for China’s service industry. The State Council recently approved a plan for the city to undergo a three-year trial to expand and open up its service sector – with a more standardised system, more effective supervision, relaxed market access and better regulatory oversight to optimise its market environment.
Later, other areas will replicate the pilot experience after Shanghai demonstrates how things play out and see if it leads to a more open and innovative service industry that can be tried in other areas.
In 2020, Shanghai's information service industry added 3.25 trillion yuan in value, an increase of 13.5%. Its online 'new economy' took the lead, with e-commerce transactions reaching 2.9 trillion yuan, an increase of 78.7% from the end of the "Twelfth Five-Year Plan" period.
Digital technology is deeply integrated with modern manufacturing, business, finance, entertainment and consumption, education and health, and business in general. And with deeper integration of secondary and tertiary industries, the producer service industry has become an important area for the service industry.
The service-oriented manufacturing industry has accelerated the development and quality of the service industry in the central urban area, driving a rapid growth in the suburbs. In 2020, the added value of Shanghai's producer service industry was 1.7 trillion yuan, with an average annual growth rate of more than 10% during the "13th Five-Year Plan" period. The producer service industry accounted for 63% of the service industry and 46% of Shanghai's GDP.
The Ministry of Commerce said on Friday morning (April 23) the Shanghai pilot project will focus on key areas and relax access restrictions for the service industry by category, the Shanghai Liberation Daily reported.
Gu Jun, director of the Shanghai Municipal Commission of Commerce, told a press conference that the pilot project to expand and open the service sector was an important opportunity for Shanghai – to deepen the implementation of the "three major tasks", strengthen the "four major functions", start the city's "four major brands", as Shanghai builds five new cities around itself.
It wants to deepen regional integration and cooperation with people in the Yangtze River Delta and speed up improvements in the city’s energy level and core competitiveness. Gu said Shanghai would implement the tasks assigned by the Party Central Committee and State Council.
The "Overall Plan" has benchmarks against the highest international standards, as China seeks to reshape the global industrial chain and restructure international economic and trade rules.