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Although ranking seventh in the world by volume, China's service trade still lags behind its trade in goods, which has jumped to third in the world.

 

Hu Jingyan, director of the Service Trade Department of the Ministry of Commerce, made the observations Thursday with the publication of a report on China's service trade development.

 

It says China's service trade volume totaled US$157.08 billion with exports at US$73.91 billion. Between 1982 and 2005 exports increased at an annual rate of 15.9 percent lifting its global position from 28th in 1982 to eighth in 2005. Imports were up from 40th to seventh worldwide.

 

But Hu said in the past two decades service trade exports accounted for less than 10 percent of the country's total exports with the proportion only half of the world average. China also faced a long-term deficit in service trade.

 

The service trade was boosted by traditional sectors like transport and tourism while the development of high-technology and high value-added sectors like finance, insurance, consultancy and postal services had just got underway.

 

Hu said China's service trade had great potential for development. The 11th Five-Year Plan set a target for service trade volume of US$400 billion by 2010.

 

The ministry planned to boost services including development of key sectors like cultural products, computer and information services, transport, finance and insurance.

 

It would also improve policies and regulations and open a professional website to create a better growth environment for service trade and offer more information for domestic companies, said Hu.

 

(Xinhua News Agency December 29, 2006)