Local governments should play vital role in opening-up effort

With China advancing reform and opening-up on all fronts, the role that local governments play in pushing forward opening-up in the service industry is particularly important compared to other industries, expert said.

Six cities were recently added to a list of those in which pilot programs focused on expanding opening-up measures have been established. Their efforts will target the service industry and should aim to better support local businesses while also increasing investment opportunities, he continued.

Tu Xinquan, a professor at the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing, said all six cities are important in their regions, have a solid foundation in the service industry and are strong manufacturing hubs. "I think the governments should concentrate on developing service industries that are closely related to production and manufacturing," he said.

For example, Hangzhou in Zhejiang province, which has a strong digital economy, should focus on combining digital services with its manufacturing industry, Tu explained.

He stressed that to make the pilot programs more effective, the role of local governments is crucial. They must help companies compete with global counterparts and improve local business and investment environments, he said.

"In the process of opening up the service industry, local governments usually play a bigger role than that in manufacturing. This is because, for one thing, the service industry is very closely related to socioeconomic activity. Also, in the service industry, local businesses are more likely to compete with global peers," he said.

"Therefore, I think local governments should have a more open and active attitude regarding the opening-up of the industry. Their job should be to aid the entire service industry, rather than just specific businesses."

Tu also said he believes proper opening-up and competition will help push forward local economic growth and facilitate the upgrading of specific areas in the service industry in the six cities.

zhangyue@chinadaily.com.cn