Global businesses eye more opportunities as China embraces service trade surge

BEIJING - At the 2024 China International Fair for Trade in Services (CIFTIS), dazzling products from the global service sector featuring state-of-the-art green and smart technologies captivated visitors from both at home and abroad.

The five-day event, which opened on Thursday, showcased a greener, smarter, and more digitalized global trade in services, with new technologies and business models redefining how services are provided and consumed.

This reflects China's focus on high-quality development and its ongoing commitment to opening up its economy, offering abundant opportunities for international businesses.

FRUITFUL FAIR

Themed "Global Services, Shared Prosperity," the 2024 CIFTIS featured over 450 Fortune 500 enterprises and leading companies from various sectors, along with the participation of 85 countries and international organizations.

The exhibition highlighted innovative trends in service trade, showcasing over 200 cutting-edge products from AI assistants to AI-powered surgical robots across sectors like tourism and healthcare.

"This year's event, with its spotlight on AI, the metaverse, big data, and satellite internet, is a testament to how services trade is no longer confined to conventional areas like finance or tourism. Instead, it's expanding into cutting-edge fields that are reshaping industries across the board," said Farhat Asif, president of the Institute of Peace and Diplomatic Studies.

Participating for the fifth time, French multinational Schneider Electric unveiled its "new quality service system" that runs through the entire business lifecycles and launched a service business China hub during the fair.

"The importance of the Chinese market, from my point of view, has not changed," Barbara Frei, Schneider Electric's executive vice-president, told Xinhua, expressing confidence in China's role as the largest market in industrial automation and as an innovation driver.

Selcuk Colakoglu, director of the Ankara-based Turkish Center for Asia-Pacific Studies, praises the CIFTIS for continually fostering global partnerships and advancements in service trade, renewing the potential for international cooperation each year.

FRESH TREND

"The momentum for global service trade development is gaining strength. The digitalization, intelligence, and greening of service trade are accelerating, with new technologies, business models, and innovations continuously emerging," said Mohammed al Ajlan, deputy chairman of Ajlan & Bros Group, a Saudi private firm that has participated in the CIFTIS for three consecutive years.

As the rapid development of digital technology is reshaping global trade in services in profound ways, this year's fair witnessed a significant shift towards knowledge-intensive services, which involve more digital and intelligent technologies.

At the pavilion of the Beijing Naton Technology Group, the display of the AI-powered surgical robot for knee replacement wowed the audience, while Tesla drew attention with its latest humanoid robot and advanced self-driving technology simulating human behavior.

China's rapid development in knowledge-intensive services has unlocked massive market potential. In 2023, knowledge-intensive services accounted for $386 billion, or 41.4 percent of China's total service trade volume, up from 33.6 percent in 2012.

"Countries and businesses that engage with China can benefit from its expertise in digital services, from AI-driven healthcare to cross-border e-commerce," said Asif.

"In this dynamic environment, the prospects for cooperation with China in service trade are not just promising -- they are essential for those looking to thrive in the digital age," she noted.

Green technologies and services were also a hit at the fair. Hydrogen-powered motorcycles, futuristic electric vehicles and cutting-edge technologies converting harmful industrial exhaust gas into valuable products demonstrated China's commitment to eco-friendly solutions.

As climate change drives nations to speed up their green transition, foreign businesses are eager to learn new technologies and services that will help achieve carbon neutrality.

"Chinese innovation and technologies for solar, wind, batteries and electric vehicles are phenomenal to watch," said Henning Kristoffersen, commercial counselor of the Royal Norwegian Embassy in Beijing, at the fair.

Noting the enormous scale of China's green shift, he said all forms of cooperation with China in this field are important.

"We need to drive the speed in the green shift, and cooperation with China is inevitable," Kristoffersen said.

"Showcasing innovations in renewable energy, sustainable supply chains, and green finance allows Chinese and foreign businesses to contribute to global environmental targets," said Anna Malindog-Uy, vice-president of the Manila-based think tank Asian Century Philippines Strategic Studies Institute.

"This not only enhances sustainability but also strengthens trade relationships based on eco-friendly innovations," she said.

SHARED OPPORTUNITIES

While showcasing its innovative strength and robust growth in service trade, China has reaffirmed its commitment to high-level opening up of the service sector through the CIFTIS, sending a signal of openness and cooperation to the world.

China would like to join efforts with all sides to share new opportunities in opening up and development, promote institutional opening-up in service trade, foster new drivers of growth, and accelerate the digital, smart and green transformation of service trade, said Chinese Vice-Premier Ding Xuexiang at the Global Trade in Services Summit of the 2024 CIFTIS.

China is "sending all the right signals for us in New Zealand," Chris Lipscombe, national president of the New Zealand China Friendship Society, told Xinhua, highlighting the potential for New Zealand to expand trade ties with China, particularly in areas like medical research, digital education, and film services.

"In a period that we have counter trends of globalization, protectionist and unilateral measures, it's important to have some fairs like this to conserve the openness and fairness of globalization in the spirit of the win-win cooperation," said Former Greek Foreign Minister George Katrougalos.

China has taken extensive measures to further open its service sector. Earlier this month, the State Council issued a set of guidelines to promote high-quality development of trade in services with high-standard opening up, calling for the establishment of a negative list management system for cross-border trade in services.

"This came in the context of China's efforts to enhance institutional openness in recent years, especially through the many international cooperation initiatives launched by Beijing, such as the Belt and Road Initiative," said Egyptian economic expert Karim al-Omda.

China's openness, especially to African and the Global South countries, has a very positive impact, al-Omda added.

The latest move of that is China's decision to give all the least developed countries having diplomatic relations with China, including 33 African countries, zero-tariff treatment for 100 percent tariff lines, the Customs Tariff Commission of the State Council announced on Thursday.

Calling it highly attractive and a great opportunity, Munteha Jemal Seid, Plenipotentiary Minister of the Embassy of the Federal Democratic Republic of Ethiopia in China, said the policy is a clear demonstration of its sincerity in supporting South-South cooperation.

"Doing business with China is an opportunity," the Ethiopian official said, adding the country will take the chance to expand its exports of products and services to China.