By Li Zhineng　

Date: 2004/07/28　　

Abstract:

The international service industry is relocating; China can take a good part in it in the long run, although the short-run expectation is restricted. Taking on with the international services relocation must cope with the direction of China's service industry as well as the macro adjustments and macro control policy. The helpful approaches for China to take on the international relocation of service industry include: to promote consumption tax to motivate the government involvement in service development; to normalize government purchase contracting to foster domestic service industry market; to speed up reforming the public institutions to direct the high-quality resource toward the market; to encourage the enterprises taking the leading position in building talents; to promote legislation in tax-exemption for private education and training expenses; to perfect legislation on intellectual property rights protection; to normalize financial market with higher level of transparency; and to make full use of the China-based multi-national companies.