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China Adopts New Policy for Service Industry
The State Development Planning Commission has decided to take new measures to push ahead with the development of the service trade during China's 10th five-year plan period (from 2001 to 2005).

The measures include a gradual opening up of various service sectors, such as banking, foreign trade, tourism, telecommunications, insurance and medical treatment, to overseas investors.

Private investors are also encouraged in all the sectors that are open to foreign investors.

One measure for pushing ahead with the reform of the service industry is that large and medium-sized state-owned enterprises in the service trade are required to turn into companies while the small state-owned enterprises are allowed to become share-holding companies or to reform their management systems.

The fast growth of the service trade is believed to be an important factor for guaranteeing the rapid and sound development of the national economy.

The commission has also called for the restructuring of the railways, aviation, telecommunication, food and beverage, public utilities and other service industries.

According to the new measures, China is to introduce more senior personnel from overseas and to speed up the training of personnel for the service industry.

(China Daily January 28, 2002)

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