China to encourage development of service outsourcing

Hong Kong-based Wen Wei Po quoted news from the Department of Foreign Trade and Economic Cooperation of Guangdong Province that China's Ministry of Commerce (MOFCOM) was brewing to promote preferential policies to encourage the development of the service outsourcing industry.

According to this report, MOFCOM is studying relevant policies to further loosen market access limitation, energetically support expansion and growth of service outsourcing enterprises, and focus on undertaking the service outsourcing business of multinationals investing in China so as to promote service outsourcing development.

Zhao Yufang, Deputy Director-General of the Department of Foreign Trade and Economic Cooperation of Guangdong Province and also President of Guangdong Association of Enterprises with Foreign Investment, revealed that MOFCOM planned to implement the "1000, 100, 10" project, namely establishing 10 bases to handle foreign service outsourcing business, introducing 100 multinationals that transfer their service business, and cultivating 1,000 enterprises to undertake service outsourcing business.

The report also indicates that China's relevant departments are working on the preferential taxation policies, the most eye-catching issue of relevant enterprises. Related officials predicted that as highly preferential taxation related and supporting policies will be offered in the future, and service enterprises might take this favorable opportunity to expand their scale.