China may open up services sector for international companies

FUJIAN: In what could be music to the ears of Indian investors particularly from the services sector, China has indicated that it will steadily open up it's service sector for international firms and continue relaxing restrictions on international investments.

Beijing claims that foreign investment into the service industry has risen and indicated that opening up of health sector is on the cards. This could be encouraging news for India's healthcare industry, according to official sources.

In fact opening up of health sector was a keenly followed topic at the 18th China International Fair for Investment and Trade Fair for Investment and Trade in Xiamen, Fujian province earlier this week.

Cumulative Indian investments in China till Oct 2012 was 470 million usd. Most Indian firms have a presence in Shanghai, commercial capital of China.

The prominent Indian firms present in China include Reliance Industries, TCS, Infosys, Wipro, Mahindras, Dr Reddys Laboratory and Tata Sons.

Besides many PSU banks have a presence in China, besides offices by ICICI and Axis. China's Vice Premier Wang Yang who addressed this fair on Monday said his country will focus on introducing advanced technology, managerial experience and build various market oriented systems in accordances with international practices.

He indicated that China will steadily open up finance, education, healthcare and culture sectors.

Foreign investments in China exceeded 1.5 trillion usd by the end of this July. Its FDI inflow was 123.9 bn usd in 2013, according to the country's commerce ministry.

As many as 800,000 firms in China had foreign capital investment. But investments big four global investors --USA, UK, France and Germany are still not high in China. But according to UNCTAD, China was the second biggest recipient of FDI in 2013.

It will be Fujian province that will be focal point for ambitious maritime Silk Road proposed by President Xi Jinping to connect China to global trade via new sea link by linking regional countries including India.