China intends to develop 10 designated outsourcing sites by 2010 in an attempt to encourage multi-nationals to offshore their services to the country, according to China's Xinhua News Agency.
The announcement, by a senior official with the Chinese Ministry of Commerce (COM), came as Shanghai, Dalian, Xi'an, Shenzhen and Chengdu were announced as the country's first outsourcing 'base' cities.
Last year China's export of service outsourcing was reported to be worth $900 million but this is expected to grow as the global market approaches the $1 trillion figure that many experts believe will be hit by 2008.
The Chinese government, which estimated this year's foreign trade volume would exceed US$1.7 trillion, is aiming to achieve a fourfold increase in its service outsourcing export volume over the next five years.
"The MOC is to channel social resources into innovation oriented enterprises, and support policies will focus on enterprises rather than export products," said Fu Ziying, China's Assistant Minister of Commerce.
A recent report by the United Nations Conference on Trade and Development said that China was already a favorite choice for multinationals' research and development, and could build on that to provide a range of outsourced services.
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