China sets up pilot areas to boost service trade

China is setting up a group of pilot areas to promote service trade innovation, the State Council announced on Thursday, according to Chinese state-run news agency Xinhua.

The aim of this policy is to boost exports and employment, the media outlet added.

The Chinese Government has selected 10 provinces and cities – including Tianjin, Shanghai, Hainan and Shenzhen – as well as five new economic zones to become pilot areas, the report added. New measures related to service trade will be implemented in these areas for two years, on an experimental base.

The new measures will aim to improve service trade business models and management, and to promote internationalisation, the State Council added in a statement, according to Xinhua.

The report also said the Chinese Government would offer fiscal and financial support to the pilot areas, including tax cuts and special funding.

China’s service trade reached US$713 billion in 2015, up by 14.6 percent year-on-year, Xinhua reported. The increase was related to a rise in exports in telecommunication, information and consulting services, according to the report.