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Shanghai, China Photo: IC

With the 2024 China International Fair for Trade in Services (CIFTIS) set to be held in Beijing from September 12 to 16, the opening-up pace of China's services sector has once again become a focus of attention, sparking discussion about its potential implications for global services trade and investment dynamics. 

As a significant platform for China's ongoing efforts to expand its opening-up initiatives, the CIFTIS is expected to be closely watched by global observers seeking insights into the future trajectory of China's services trade. The services sector plays a crucial role in international economic and trade cooperation, serving as a vital component for China as it seeks to establish a new development paradigm and foster a new wave of high-level opening-up.

For instance, China has taken an important step toward opening up its medical sector by proposing the establishment of wholly foreign-owned hospitals in certain cities and regions across the country, according to a circular jointly issued by the Ministry of Commerce, the National Health Commission and the National Medical Products Administration on Sunday. The move not only demonstrates China's firm commitment to opening up its medical services sector but also reflects a proactive response to the diverse healthcare needs of its population.

As the economy and society evolve and living standards improve, public demand for high-quality medical services is on the rise. In this context, the introduction of foreign-owned hospitals can have several positive impacts on China's healthcare system.

First, China's medical market is vast and rapidly evolving. Foreign pharmaceutical companies are thriving in this environment, reaping significant profits. With the continued opening of medical services, advanced hospitals and related sources of capital from around the world stand to gain even more in this promising market.

Second, the entry of foreign-owned hospitals can increase the supply of medical services, particularly in specialized areas such as cancer treatment and cardiovascular diseases, by introducing internationally recognized treatment protocols and state-of-the-art medical equipment. 

Third, China's medical research and development, particularly in treatment technologies, has progressed rapidly in recent years. The entry of foreign hospitals into China presents an opportunity for both sides to leverage their complementary strengths.

Fourth, the establishment of foreign-owned hospitals can attract more international medical talent, enriching the professional capabilities and global perspectives of Chinese medical personnel through talent exchanges and collaboration.

Medical services represent just one aspect of the broader opening-up of China's services sector. As the Chinese economy continues to grow and consumption upgrades, the implementation of opening-up policies in areas such as finance, education, culture and technology services is expected to create new opportunities for foreign investment.

Services trade, alongside goods trade and digital trade, is a vital and promising component of China's foreign trade landscape. The opening-up of the services sector not only allows foreign companies to benefit from the Chinese market but also fosters innovation and development in related industries through healthy competition, ultimately bolstering services consumption.

It should be acknowledged that in the current global economic landscape, policy barriers to services trade are more complex than those for goods trade. The rise of unilateralism and protectionism has generated a backlash against economic globalization, posing significant challenges to the openness of the global services sector. 

It is against this backdrop that the opportunities for services trade arising from China's economic transformation are particularly noteworthy and should not be overlooked. China is adopting a more open approach, welcoming high-quality global resources and services into its market to foster the prosperity and development of its services sector. 

The ability of foreign investors to capitalize on this historic opportunity depends on their willingness to genuinely understand China's market opening and address the needs of Chinese consumers. Only by doing so can foreign companies achieve mutually beneficial growth in the context of China's services sector opening.