China to boost service trade

China will speed up service trade development to optimize foreign trade structure, foster new growth momentum and increase employment, a government statement said Sunday.

"In the coming two years, the government will pilot innovative development measures on service trade in 10 provinces and cities, including Tianjin, Shanghai and Hainan, as well as at five new development areas at state level, such as Harbin," said a statement issued after Sunday's executive meeting of the State Council chaired by Premier Li Keqiang.

Priority will be given to systematic construction in eight aspects, including management and development mode, according to the statement, vowing to orderly expand market access of the service sector.

The government will ramp up relevant policy support in pilot areas by giving tax preference to advanced technology-based service enterprises, providing financial support to small and medium service enterprises and encouraging financial institutions to make business innovations on supply chain financing.

To those service enterprises that are advanced technology-based and high value-added, the government will offer them the same tax preferences as service outsourcing companies -- a low enterprise income tax rate of 15 percent while tax free to staff education expenses as long as they account for no more than 8 percent of the total amount of wages.

Against the severe and complicated international economic situation, China should promote the level of opening with greater efforts, the statement said. Endi