Next big opportunities in China for MNCs

Aiming to generate renewed momentum in exports of services, China will also establish high-standard service outsourcing demonstration cities to foster innovative formats and approaches within various subsectors of trade in services, according to information released by the Ministry of Commerce.

In the context of sluggish international demand, increasing protectionist pressures and escalating geopolitical tensions, Xin Yongfei, head of the Policy and Economic Research Institute at the China Academy of Information and Communications Technology, noted that the realm of digital trade, propelled by technological innovations, policy support and evolving trends, will emerge as a pivotal driving force in strengthening China's exports and cutting down on business transaction expenses.

Digital trade refers to trade in goods and services that are digitally ordered and digitally delivered, such as cross-border e-commerce and digitally facilitated transactions in trade in services, which account for a growing share of international trade, according to information released by the Geneva-based United Nations Conference on Trade and Development.

Xin warned that it is crucial for China to further elevate the strategic importance of digital trade and actively promote international cooperation in this field to enhance its strength, as many economies, such as the United States, the United Kingdom, Japan and South Korea, have deeply engaged in global digital trade agreements, safeguarding their advantageous position in digital trade.

The total value of China's foreign trade in digital services reached $371.08 billion in 2022, growing 3.2 percent year-on-year and accounting for 41.7 percent of its total trade in services last year, according to a report jointly released by the Development Research Center of the State Council and the CAICT.

To reinforce China's growth potential in the digital trade sector, the government will accelerate the industrialization pace of the digital sector as well as nurture and strengthen digital industries such as cloud computing, big data, artificial intelligence, blockchain, virtual reality and industrial software, said Zhao Zhiguo, chief engineer at the Ministry of Industry and Information Technology.

Xiao Ran, general manager for China at British technology consulting company Thoughtworks Inc, said China's "Digital China" plan solidifies the country's position as the leader in the digital era.

"The emergence of generative artificial intelligence illustrates China's expanding capacity for innovation while also opening up sizable potential that plays to our advantages," said Xiao. In the next step, the company will deploy more resources to enhance the business coordination between its offices in Shenzhen, Guangdong province, and Hong Kong to expand its businesses in the Guangdong-Hong Kong-Macao Greater Bay Area, he said.