Opening-up • Beijing

Source:sw.beijing.gov.cn

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Beijing is the first and only comprehensive pilot city in China to expand and open its service industry.

According to PwC's evaluation of two batches of pilot work in three years of Beijing's service industry expansion and opening up, the expansion and opening up of the service industry has effectively promoted Beijing's service industry's opening up and innovation development and the transformation and upgrading of its economic structure, effectively enhanced market activity, further strengthened the driving effect of the service industry on regional economic development, and formed 68 national initiatives of opening up and innovation with the best effect.

The expansion and opening of Beijing's service industry is not restricted by regions and objects, and is an industry opening mode covering all regions of the city.

The expansion and opening of the service industry, the construction of the free trade experimental zone and the basic liberalization of service trade between the mainland and Hong Kong and Macao have jointly formed a multi-level, wide-ranging and high-level service industry opening pattern.

We shall have a deep understanding of the importance of the new round of comprehensive pilot work, do a good job of the pilot work with greater determination, courage and strength, effectively play the role of a comprehensive pilot system innovation experimental field and a new engine for high-quality development, and push Beijing's reform and opening up to a new level (Abstracted from the speech of Cai Qi, the Secretary of Beijing Municipal CPC Committee, in the new round of service expansion and opening-up comprehensive pilot city mobilization deployment conference).

Beijing's service industry expansion and opening up pilot has further consolidated the service development-led economic development pattern.

• In 2018, the added value of Beijing's service industry increased by 3.1 % compared with 2014 before the pilot.
• Consumption in the service sector accounted for 53.8% of the total market consumption, up 11.8 % from 2014.

The expanded opening-up of service industry stimulated the rapid growth of service trade

• Over the past five years, the import and export volume of Beijing's service trade has shown an increasing trend year by year.

• In 2018, the import and export volume of service trade exceeded RMB (equivalen to USD 160.62B), an increase of about 10%, reaching an eight-year high, accounting for 1/5 of the national service trade volume.

Successful experience has driven the innovation and development of the national service industry, and the case study of success have been popularized nationwide in four batches. Of which:

• "Single Window, Single Form" for the registration and filing of enterprises with foreign investment was written into the working report of the State Council, and popularized to the whole China for learning.

• Opening-up expansion policy including relaxing the restriction on talent intermediaries was popularized to the pilot free trade zones through official document of the State Council.

• The Ministry of Commerce has also replicated and promoted two batches of nine best practice case studies in the pilot to the whole China.

Significant Results Upon Attracting FDIs in Key Opening-up Fields

• In 2018, 1548 foreign-invested enterprises were newly established in the service industry, accounting for 94.5% of the new enterprises in the city.

• The actual utilization of foreign capital in service industry is 14.86 billion USD, accounting for 85.8% of the whole city.

• 1121 enterprises were newly-established in key areas of further opening up service sector, accounted for more than 70%, and 10.43 billion USD for actual utilization of foreign capital, accounted for more than 60%.

Opening-up Brings About Strong Driving Force

The birth of the new industrial chains in service sector

• The first foreign-controlled aircraft maintenance JV in China

• The first independent direct selling bank in China

• The first foreign-controlled security in China

• The first enterprise of word famous bank card clearing agency in China

• The first home-based old-age disability mutual insurance in China

• The first case of large-scale hospital and social capital in the country to operate a medical model with franchise cooperation

• The first special fund for internationalization of enterprises set up in China

• The first intellectual property securitization product in China

The new open economy system is gradually forming

• The first "full-cycle" management mechanism to strengthen supervision services for foreign-invested enterprises

• The first intangible asset financing model to expand corporate financing channels

• The first local standardization system for life service industry, boosting service quality

• The first inspection and quarantine "Zhongguancun model" to promote the development of biomedical industry

• The first "one-stop" international talent service to optimize high-end talent services

• Estalished a bonded transaction model of "in-zone storage + out- zone exhibitions" to open the entire chain of art transactions

• Established a business environment evaluation mechanism to optimize the business development environment

• Established a cooperative mutual recognition of the tax rebate model to promote tourism consumption services

• Create an international economic and trade cooperation platform, 31 overseas Beijing Municipal international economic and trade development service centers have been established in the world

Accelerated gathering of international high-end resources

• 178 regional headquarters of multinational corporations

• 230 foreign investment companies

• R&D headquarters of Apple, Tesla, Merck, Mercedes-Benz and other multinational companies

• The world's three largest rating agencies

• Daimler Innovation Incubator and other multinational venture service organizations

• The world's top ten law firms, 40 top '100 brand' human resources service organizations, and 6 world top ten consulting companies

• Internationally reknowned financial organizations such as the World Bank, the International Monetary Fund, the Asian Development Bank, and the Asian Investment Bank

Thanks to the guidance and support of regulatory agencies and government departments, HSBC has maintained good business growth in Beijing and its outlets have been rolled out one after another. As the largest foreign-funded bank in Beijing, HSBC actively serves the real economy and participates in various suggestions for social development. The business environment in Beijing has  been continuously optimized in the past few years, and the policy benefits of expanded opening-up of the service industry has been gradually distributed to various institutions. We expect Beijing to have a more internationalized, opened and inclusive business environment in the future.( HSBC Bank (China) Co., Ltd.)

First-good Standards, Comprehensive Polit of Further Opening-up of the Service Sector in Beijing 3.0 - Further Opening-up Led by the Service Sector

Basic thoughts on five dimensions

I. Benchmark against advanced international rules to improve the open economic system;

II. Build a pioneer zone of all-round opening-up by implementing the negative list system;

III. Coordinate inward and outward opening-up and optimize the layout of further opening up the service sector;

IV. Implement the model of "industrial opening + industrial park opening" , and build a new high ground of reform and opening-up;

V. Pay more attention to "soft power" in opening-up and create a world-class business environment.

Main tasks in 9 aspects

I. Based on Beijing’ s position as the political center, further strength the capability of service providing;

II. Build Beijing into the cultural center, and enhance its cultural soft power and international influence;

III. With a view to build Beijing into the center for international exchanges, continuously improve the software and hardware facilities that serve international communications;

IV. Assist in the building of the science and technology innovation center, and foster a world-class ecosystem for innovation and business startups;

V. Promote Beijing-Tianjin-Hebei coordinated development, and form a new pattern of regional coordinated opening-up;

VI. Integrate policies on Beijing's sub-center and create a pioneer comprehensive pilot zone for further opening-up the service sector;

VII. Enhance Beijing's functions as a financial regulation center, serving the nation in financial reform and opening-up and risk prevention;

VIII. Improve the quality of consumer services to facilitate the construction of a world- class harmonious and livable city;

IX. Benchmark against advanced international rules to foster a world-class business environment.

Seven major fields

I. Science and technology

II. Internet information

III. Finance

IV. Education

V. Cultural and tourism

VI. Heathcare for the elderly

VII. Professional services

Ten-All reforms

I. Deepen the reform of the "all-phase" commercial registration system

II. Explore the "all-field" negative list management model

III. Improve the "full-cycle" supervision service mechanism for foreign investment

IV. Optimize the "full-path" enterprise financing environment

V. Implement "full-dimension" international talent guarantee

VI. Promote the "full-process" customs clearance facilitation reform

VII. Create a "full-transparency" tax service environment

VIII. Promote "all-round" intellectual property protection

IX. Improve the "full-coverage" rule of law guarantee mechanism

X. Establish a coordinated development and promotion system for the "full-chain" regional industrial chain

177 pilot tasks

Comprehenvive Polit of Further Opening-up of Sevice Sector 3.0

Which areas of the service sector will be further opened to foreign investors?

1. Foreign investors may set up wholly-owned aircraft maintenance companies;

2. Foreign investors may invest in audio-visual production business;

3. Foreign investors may set up wholly-owned performing agencies and provide services nationwide;

4. Foreign investors may set up wholly-owned performing clubs;

5. Foreign investors may set up wholly-owned entertaining clubs;

6. Travel agencies wholly-owned by foreign investors or co-funded with Chinese investors may engage in overseas tourism business;

7. Foreign investors may set up wholly-owned human resources service agencies in Zhongguancun area;

8. Foreign wholly-owned entities may engage in value-added telecommunication businesses, including store-and-forward, multi-party domestic communication service, and Internet access;

9. Conditions for foreign investors to set up investment holding companies are relaxed;

10. The control over access to non-profit elderly institutions in the form of private non-enterprise entities by foreign contribution has been relaxed;

11. Requirements for business experience have been waived for foreign-invested enterprises to gain accredited certification;

12. The accreditation of QDII is expanded to cover investment management institutions set up in Beijing by both domestic and foreign agencies, including domestic securities companies, fund management companies, and futures companies;

13. Newly-established or restructured solely foreign-owned banks or Sino-foreign joint venture banks may apply to engage in RMB business upon submitting applications for business opening;

14. New drugs developed overseas are allowed to be put in Phase I clinical trials at home and abroad simultaneously;

15. A pilot system of medical apparatus registrant is launched, allowing Beijing's medical apparatus registrant to entrust the production to manufacturers of medical apparatus in Beijing- Tianjin-Hebei region.

16. To reduce the qualification requirements of lawyers participating in the pilot, and to carry out the pilot of foreign lawyers serving as foreign legal advisers in domestic law firms.

In which aspects will enterprises benefit from the further opening-up of the service sector? On facilitated customs clearance

• We will promote the bonded logistics model with the logistic chains of headquarter enterprises as units, and accelerate the pilot grogram of sharing bonded support for aviation supplies;

• We will explore the possibility of allowing eligible enterprises outside the areas under special customs supervision to engage in bonded maintenance service with both material source and target market overseas. We will support the development of aviation supplies sharing platform and build an aviation supplies exhibition and trading center;

• We support the bonded goods stocking business of cross-border e-commerce, and implement bonded import for online shopping on a trial basis (regulatory code 1210);

• For vehicles temporarily imported by enterprises for R&D and testing purposes that are not subject to compulsory inspection, the temporary import period is extended to two years;

• We will streamline the quarantine and approval procedures for international exhibits and exempt relevant exhibits from inspection;

• We will fully adopt electronic manifest management for international transfers.

China International Fair for Trade In Services (CIFTIS)- An important bridge for "introduced-in and going-out" of the further opening-up of service sector

The CIFTIS covers all 12 major fields defined by the World Trade Organization, including commercial services, communication services, construction services, sales services, education services, environmental services, financial services, health and social services, tourism services, cultural and sports services, and transportation services.

CIFTIS has attracted 179 countries and regions, more than 200 international organizations and business associations, and 650,000 people to participate in the previous five fairs, by setting up special exhibitions, summit forums and trade negotiation platforms in the global service trade industry.

CIFTIS 2019: Openness, Innovation, Wisdom and Integration

Focus on the four key areas including scientific and technological services, cultural services, health services and business services to build a higher standard and higher level of international service trade exchange and cooperation platform!