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Opening-up service sector can enhance overall competitiveness

China Daily | Updated: 2025-04-23 00:00
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International manufacturing companies have been realizing the transformation from being traditional manufacturers to service providers, and they occupy the high end of the value chain in the smile curve, while most Chinese manufacturing companies are in the manufacturing link, with relatively thin profits.

With the abuse of tariffs by the United States raising costs and upsetting the supply chains of some of the country's globalized production brands, Chinese private enterprises should become the main force in the development of high-end productive service industries.

With this in mind, the central authorities introduced the latest progress of the implementation of the Work Plan for Accelerating the Comprehensive Pilot Program for Expanding Opening-up of the Service Sector that was released earlier this month at a news conference in Beijing on Monday.

According to the Ministry of Commerce, China is accelerating the opening-up of its service sector by fast-tracking the implementation of pilot projects, expanding related coverage, and enhancing stress testing and the replication of successful practices.

At present, the development of the service industry still needs the establishment of a standard system that is in line with international standards. And while the rapid development of China's manufacturing industry has benefited from the engineer dividend, the modern service industry needs more compound talents. At present, the development level and talent density of China's productive service industry need to be further improved.

Chinese enterprises should continue to promote the deep integration of modern service industry and advanced manufacturing industry. They should establish a service industry standard system in line with international standards and a more coordinated and complete division of labor system, promote separation and outsourcing of service businesses, and cultivate professional R&D design, modern logistics, business consulting and other productive service enterprises.

It is also necessary to develop emerging services for the entire life cycle of manufacturing, explore the integrated development path of modern service industry and advanced manufacturing industry, and promote service enterprises and manufacturing enterprises to achieve collaborative innovation in products, technology, design and management.

Chinese enterprises should gradually build an open service industry system that is connected with international practices, and enhance the brand influence and international competitiveness of "Chinese services". China should continue to utilize international resources to develop productive services, and introduce more highlevel enterprises to enable China's manufacturing industry to "go global". It should encourage logistics, supply chain management, consulting, law, accounting and other professional services to "go global" in coordination with the manufacturing industry, enhance the global service market's resource allocation capabilities, and improve China's overall global competitiveness in manufacturing.

- 21st Century Business Herald

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