China may buy 2.5 trillion U.S. dollars of foreign services in five years

Source:Cfbond 2018-11-08 19:52

By Yin Lei

A publication by China's Ministry of Commerce (MOFCOM) forecasts that China's services imports will reach an aggregate of 2.5 trillion U.S. dollars for the next five years, Economic Information Daily reported on Wednesday.

At the ongoing China International Import Expo (CIIE) lasting from Nov. 5 to Nov. 10 in Shanghai, The MOFCOM released China's first official report on its imports of services, showing China to be one of the global leaders in services trade.

Statistics by the World Trade Organization (WTO) revealed that China's services imports had been growing at an annual rate of 16.6 percent for the past 15 years, compared to a global average of 8.1 percent for the same period, according to the above report.

Over the past five years, 25.8 percent of the addition in global services imports originated from China. In 2017, China's imports of services grew by 3.4 percent to 467.6 billion U.S. dollars, the second largest in the world.

The above report predicts that for the next five years, services entering China are expected to reach an aggregate of over 2.5 trillion U.S. dollars, making up over 10 percent of the global volume and contributing over 20 percent to growth in services imports around the world.

From China's entry into the WTO in 2001 to 2017, China's service imports had surged 11 times and its global share has jumped from a mere 2.6 percent to nine percent, said Xian Guoyi, head of the MOFCOM's Department of Trade in Services and Commercial Services.

In the future, China will further open up its services sector, increase the imports of high-quality services, enhance the incentive mechanism for services imports, improve the business environment, and deepen related international cooperation, said the above report by the MOFCOM.

Experts point out tremendous development potential for China's services sector, which currently accounts for only about 50 percent of its GDP. In the developed economies, this ratio ranges from 70 percent to 80 percent.