A snapshot of the 2023 China International Fair for Trade in Services in Beijing on September 2, 2023 Photo: Li Hao/GT

Foreign diplomats and representatives of chambers of commerce in China are eyeing the growth potential in the Chinese market, especially the services market, at the 2023 China International Fair for Trade in Services (CIFTIS). As the world faces multiple challenges in the post-pandemic period, it is the common aspiration of the world to seek shared development with China.

China is a major contributor to global trade in services, accounting for 6.4 percent of the world total. Also, it has achieved significant progress in liberalizing its services sector, and there are opportunities to feel of this progress, Tamas Hajba, a senior advisor and director of the OECD Beijing Office, said at the 10th China Inbound-Outbound Forum, hosted by the Center for China and Globalization – a think tank in China, a sideline event of the 2023 CIFTIS, on Monday.

China has developed very fast in the past 30 years. Now, the global economy is moving from industry 1.0 to industry 4.0, and it's getting more and more services oriented, Thilo Ketterer, partner of Rödl & Partner Management Consulting (Shanghai) Co, told the Global Times on Monday.

"In this regard, German companies can support Chinese companies very much, as German companies have much more experience in terms of time," Ketterer said.

China is an ever-expanding market, and international businesses can play an important role in supporting China's economic objectives, Geraldine McCafferty, deputy head of Mission at the British Embassy Beijing, said on Monday.

"China is already the UK's fourth-largest trading partner, but trade in services is underrepresented in our trade relationship with China. As such, I firmly believe that there are many more mutually beneficial opportunities in the services sector," McCafferty said.

The UK is the Guest Country of Honor of CIFTIS and it sent the largest business delegation to China in four years to the fair, with about 60 British companies and organizations planning to engage in policy dialogues with their Chinese counterparts.

"Professional services aside, at the CIFTIS, for example, there's a big delegation from the UK coming for audio visuals, as well as TV and media. The opportunity is definitely there. We're seeing there's a lot of partnerships going on between the UK and China," Rachel Tsang, managing director at the British Chamber of Commerce in China, told the Global Times on Monday.

The services sector is UK's strongest sector. It actually makes up 80 percent of the country's GDP, but in China it is only 40 percent. There are still many areas of growth besides banking, finance, legal services and education, said Tsang.

Speaking of the potential sectors of cooperation beyond education and trade, Tom Hoogendijk, president of Benelux Chamber of Commerce in China, told the Global Times that China's policies aimed at attracting research and development (R&D) institutions are very welcome.

"The potential is there for foreign companies to open R&D centers in China. But there's still a lot of work to be done before we can really realize this potential," Hoogendijk said.

Apart from growth potential, representatives from foreign commerce chambers hailed China's improvement in the services sector.

"Most of the European headquarters of Chinese banks are in Luxembourg because it provides a good and fair policy environment for Chinese banks. It's also become easier for foreign banks to incorporate in China as well," Hoogendijk said.

"We appreciate the 24 points issued by the State Council [to optimize foreign investment], which is very encouraging and judicious and in a timely manner," Onodera Osamu, director-general for Beijing Office and Chief Representative for North East Asia at the Japan External Trade Organization (JETRO), said on Monday.

Onodera revealed that tax-related issues, highlighted in JETRO's annual white paper published in June, have been resolved, which is very encouraging.

However, representatives also noted that there are challenges facing China and the world in the development of the services sector.

Hajba noted that there are rising trade barriers in the services sector, especially for services that are essential to the digital economy.

Ketterer said that there's a lot of information in the market that doesn't reflect the real situation. The recognition of China needs to be more fact-based, and that's much more positive than is currently shown.

"We had a really globalized world before the pandemic. It's not only how China can open. The Western countries need to be open," Ketterer noted.

McCafferty also noted that the UK does not believe in the narrative of decoupling. 

"We think that trade is a good thing. However, across the world, more and more countries and governments are paying attention to challenges that increased trade can bring. The UK and China are no exception," McCafferty said.