Why this is important to Wisconsin businesses: Business-friendly changes in sectors including health care and education spell opportunity for Wisconsin companies.
After a State Council executive meeting chaired by Premier Li Keqiang this month, a statement was released indicating that China’s government will offer more policy support to boost the growth of the service sector. Restrictions will be eased for the development of elder care, education and sports services.
The government will eliminate burdensome administrative approval processes in setting up elder care institutions, and will allow private schools to make their own decisions to adjust fees. Furthermore, domestic educational institutions are encouraged to cooperate with foreign counterparts to improve competitiveness. China intends to continue to adjust policies, improve government services and create a favorable environment for development of the service sector, including tourism and recreational sports.
While China’s economy has been growing relatively slowly since the global financial crisis, the country has made solid progress in restructuring the economy from manufacturing and investment to services and consumption.
Official data show that the service sector grew 7.5 percent in the first half of the year, accounting for more than half of all economic activity. The sector is expected to continue to grow in the near future.
A prosperous service industry is characteristic of a modern economy and an important symbol of the Chinese economy’s modernization, internationalization and overall health.
China’s service sector holds major potential for American companies. With a growing Chinese middle class demanding a better quality of life, the potential in service-based sectors such as health care, education, tourism, food and environmental protection is huge for U.S. companies with high-quality products to provide.