China to Boost Production-oriented Service Industries

China will accelerate the development of production-oriented service industries in a bid to step up industrial restructuring and prop up economic growth.

Priorities will be given to the development of research and design, commercial services, marketing and after-sales services, and will be driven by the market and innovation, according to an executive meeting of the State Council chaired by Chinese Premier Li Keqiang on Wednesday.

The move is expected to stimulate domestic demand, boost social employment and improve people's livelihoods, as well as stabilize economic growth, the meeting said.

It will also help the sector to move up the value chain, and prompt integrative development of the country's tertiary, agriculture and industry sectors.

According to the meeting, design and application of new materials, products and techniques will be strengthened. Improvements will be made in information technology and energy saving services, as well as logistics services for manufacturers.

Financial services for the manufacturing of construction equipment, delivery vehicles and production line will be promoted, while the country will encourage service outsourcing and the nurturing of high-end talents.

The central government will ease market access to attract social capital to the industries, encouraging Chinese enterprises of the sectors to invest overseas and lifting access restrictions gradually for foreign companies on architectural design, accounting audit and commercial logistics.

Enterprises of research and design, inspection and certification, and energy saving will be allowed tax breaks that have been enjoyed by high-tech companies.

The meeting said value-added tax will be promoted to the entire tertiary sector and promised favorable policies to build a sound environment for companies in production-oriented service industries.

In addition, the country will continue to develop service industries concerning daily life, such as health, elderly care and information consumption, improving people's well-being and building a new engine for healthy economic and social development.

The meeting approved a draft of the Food Safety Law, which requires full supervision, stricter punishment, accountability, increased risk monitoring and improved food safety standards.

The draft is still subject to deliberation of the Standing Committee of the National People's Congress, the meeting said.

Source: Xinhua