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Trial in service trade
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Hangzhou has been selected by the State Council, China’s cabinet, to pilot an innovation program in the service trade sector, according to a State Council meeting on February 15.
Other cities and provinces selected for service trade innovation are Tianjin, Shanghai, Hainan, Shenzhen, Wuhan, Guangzhou, Chengdu, Suzhou and Weihai as well as five national-level development areas — Harbin, Jiangbei, Liangjiang, Gui’an and Xixian.
They will focus on service trade innovation in eight areas, such as service trade supervision, new business models, and convenience of trade. After two years of trial, China will open the service trade sector to foreign firms.
Service companies that have advanced technologies can enjoy preferential tax policies in the trial areas, including a 15 percent reduction in income tax and a reduction of education fee up to 8 percent of an employee’s salary.
An innovation fund will be set up to support small and medium-sized service companies and subsidize importers of important technologies.
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