Opinions of the State Council on Promoting the Accelerated Development of the Service Outsourcing Industry

· Document Number：No. 67 [2014] of the State Council

· Area of Law： Reform and Opening-up

· Level of Authority： Regulatory Documents of the State Council

· Date issued：12-24-2014

· Effective Date：12-24-2014

· Status： Effective

· Issuing Authority： State Council

Opinions of the State Council on Promoting the Accelerated Development of the Service Outsourcing Industry
(No. 67 [2014] of the State Council)
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government; all ministries and commissions of the State Council and all institutions directly under the State Council:
In recent years, the scale of the service outsourcing industry in China has been expanding rapidly, the structure has been optimized continuously, and industrial conglomeration effects centered on service outsourcing demonstration cities in China have been enhanced increasingly. Adhering to reform and innovation, facing towards the global market, accelerating the development of high-tech and high value-added service outsourcing industry, promoting business startups and innovations from all walks of life, as well as transforming from primary low-cost competition into more intelligent investment competition, are of great significance to promoting the structural adjustment, forming new supports for industrial upgrading, new highlights of increase of foreign trade and new engines of development of modern service industry, and expanding new employment channels. In order to promote the accelerated development of the service outsourcing industry and promote “Chinese services” to another new stage and reach out to the world, the opinions are hereby offered as follows:
I. General requirements
1. Guiding thought. Under the guidance of the Deng Xiaoping Theory, the important thought of “Three Represents” and the Scientific Outlook on Development, the spirit of the 18th National Congress of the Communist Party of China and the Second, Third and Fourth Plenary Sessions of the 18th CPC Central Committee shall be thoroughly implemented, the decision and deployment of the State Council shall be conscientiously implemented, and as oriented by the expansion of domestic and international markets, with the focus on the cultivation of new competitive advantages and the creation of a favorable development environment, under the principles of reform and innovation, highlighted focuses, implementation by steps and exemplary conglomeration, great efforts shall be made to stimulate innovation impetuses of enterprises and market vitality so as to enhance the service outsourcing industry to a new level as soon as possible.
2. Development objectives. In the coming three years, a group of middle and high-level talent, inter-disciplinary talent and international talent will be fostered, a group of well-known service outsourcing enterprises at the international advanced level will be cultivated, and a group of service outsourcing industry clusters with highlighted leading industries, strong innovation capability and pilot programs in systems and mechanisms will be established; the scale and quality of talent teams will be further enhanced, a considerable amount of job opportunities will be provided to university graduates; the continued rapid expansion of the scale of the service outsourcing industry will be realized, and an average annual increase of over 25% in the scale of international service outsourcing business shall be achieved; the industrial structure shall be further optimized, and the percentage of high-tech and high value-added service outsourcing business shall be continuously raised; the regional layout shall be improved remarkably, a sound development pattern with distinct features, complementary advantages and orderly coordination will be formed preliminarily; the professional service capacity and level of service outsourcing enterprises shall be remarkably improved, the radiation and leading effects of service outsourcing demonstrative cities in China shall be further strengthened; and the policy system and service guarantee system for the service outsourcing industry shall be further improved.
By 2020, the service outsourcing industry will develop on the domestic and international markets in a coordinated manner, of which the scale will be greatly expanded, the structure will be greatly optimized and the international competitiveness of enterprises will be significantly enhanced, and will become an important way for China to participate in the global industrial division and improve the industrial value chain.
II. Cultivation of new competitive advantages
3. Clarifying the orientation of the industrial development. The outsourcing services for information technologies, business processes and knowledge processes shall be synchronously promoted, with the focus on developing high-tech and high value-added service outsourcing businesses and promoting the extension to the high-end industrial value chain. The Catalogue of the Service Outsourcing Industry for Guiding the Key Development Fields shall be issued on a regular basis, and the guidance for the development of the service outsourcing industry shall be strengthened. The fields of the service outsourcing industry shall be actively expanded, and the service outsourcing in such fields as software and information technology, design, research and development, Internet, medical treatment, manufacturing and energy shall be vigorously developed; the development of service outsourcing in such fields as cultural creativity, education, transport and logistics, health care, science and technology services, wholesale and retail, leisure and entertainment shall be accelerated; and the financial service outsourcing business shall be actively developed, and financial institutions shall be encouraged to outsource their non-core businesses.
4. Implementing the international market diversification strategy. The new trend of accelerated international transfer of global services shall be followed, and the communication and cooperation with relevant countries and regions in terms of the service outsourcing shall be further expanded. The cooperation with developed countries shall be consolidated and strengthened, and great efforts shall be made to raise the percentage of high-end service outsourcing business; emerging markets shall be actively explored, and new businesses and marketing networks shall be continuously expanded; the cooperation with surrounding countries shall be deepened, and the export of service standards shall be promoted; closer relations with countries and regions along the Silk Road Economic Belt and the 21st Century Maritime Silk Road shall be established, and a new diversified market pattern shall be built.
5. Optimizing the layout of the domestic market. Based on existing bases and development trends of the service outsourcing industry, the potentials of domestic service outsourcing market shall be deeply tapped, and an industrial development pattern centered on service outsourcing demonstrative cities and with the reasonable structure, distinctive features and complementary advantages shall be built. The industrial concentration advantages formed in the Yangtze River Delta, Pearl River Delta, Bohai Rim and Beijing-Tianjin-Hebei Region shall be maximized to actively attract domestic and overseas innovation resources, to build a platform of the service outsourcing industry at the international advanced level, to continuously enhance the industry competitiveness, to take the lead in reaching the international advanced level, and to accelerate and drive the development of the service outsourcing industry throughout the country. The regional advantages of central and western China shall be maximized, the construction of infrastructures for the service outsourcing industry shall be further strengthened, the promotion of the development of the service outsourcing industry shall be regarded as an important breakthrough of the industrial transformation and upgrading and the establishment of a new height of open economy in inland areas, so as to undertake the industries transferred from eastern China and other countries in an orderly manner. The advantages of complete industry system in northeast China shall be maximized, the development environment shall be continuously optimized, and more efforts shall made in the exploration of the market, so as to provide powerful support for the revitalization of the old industrial bases in northeast China and the transformation and development of resource-based cities.
6. Cultivating and enlarging the scope of market players. Enterprises under different forms of ownership shall be supported to engage in the service outsourcing business, and the professional, large-scale and branding development of service outsourcing enterprises shall be encouraged. The enterprises shall be encouraged to improve their level of research and development and innovation, and the enterprises shall be guided and supported in researching and developing integrated designs, integrated solutions and relevant technology projects through national science and technology plans (special plans or funds). Service outsourcing enterprises shall be encouraged to strengthen innovation in business and management models, and actively developing service outsourcing operations in the form of undertaking long-term contracts. A group of leading service outsourcing enterprises with strong innovation capability, high level of integration services, and international competitiveness shall be cultivated. A group of “specialized, reputed, unique, new” small and medium-sized service outsourcing enterprises shall be supported. Enterprises, particularly industry enterprises, shall be encouraged to break the “all-inclusive” integration pattern, and purchase professional services which are not their core businesses. Service outsourcing enterprises shall be guided in optimizing the allocation of funds, technologies, talent, and other resource elements through merger and restructuring, so as to realize complementary advantages. Government departments shall continue to broaden the procurement of services, and entrust professional service enterprises with the outsourcing business.
7. Strengthening the building of talent teams. Both international and domestic resources shall be fully utilized to strengthen various cultivation and training of service outsourcing talent. The method of combining the introduction and cultivation of talent shall be adopted to strengthen the construction of middle and high-end talent team. Higher education institutions shall be supported in adjusting and optimizing the service outsourcing specialty and talent structure as oriented by demand for talent, encouraged to conduct teaching activities in accordance with the relevant service outsourcing talent standards, carry out the pilot program of the reform of setting the curriculum systems, and guide students in innovation and entrepreneurship. Higher education institutions and enterprises shall be encouraged to innovate in their cooperation modes, actively carry out interactive talent training, and jointly build practical education bases; and the two-way exchange between the teachers of higher education institutions and the senior engineers of enterprises shall be supported. The capability and level of employees shall be comprehensively enhanced, qualified service outsourcing enterprise shall be supported in the employment of college graduates through cooperation between higher education institutions and enterprises, and the internal training system shall be established and improved.
III. Strengthening policies and measures
8. Strengthen planning and guidance. The implementation of the general plan for the service outsourcing industry during the “12th Five-Year Plan” shall be assessed in a comprehensive and objective manner, and the General Plan for the Service Outsourcing Industry in China during the “13th Five-Year Plan” shall be researched and formulated, which shall specify the key areas, main tasks and guarantee measures, among others, for the service outsourcing industry during the “13th Five-Year Plan.” The layout of service outsourcing industry clusters shall be planned scientifically to form industrial clusters and maximize the leading role. The relevant departments shall include educational resources within the service outsourcing industry clusters, infrastructures of Internet of Things, big data, cloud computing and mobile Internet and application of new technologies thereof, as well as the innovation projects of enterprises in term of technology, management and business model into the relevant general plans during the “13th Five-Year Plan.”
9. Deepening international exchange and cooperation. The quality of bilateral economic and trade cooperation shall be enhanced, and the practical cooperation in the service outsourcing industry shall be enhanced under the framework of existing mechanisms, so as to create a favorable international environment for joint development. More support shall be provided for service outsourcing enterprises to participate in international exhibitions, project negotiations and other activities. In light of the implementation of “going-out” strategy and foreign aid, and by comprehensive use of various measures such as trade, export credit, foreign investment and cooperation and foreign aid, qualified service outsourcing enterprises shall be supported in “going out” to cooperate in high value-added projects in terms of outsourcing research and development, knowledge processes, and business processes. Enterprises and institutions shall be encouraged to purchase high-end services with a high degree of technical content and new business model in the international market, as well as to introduce advanced technologies, advanced management methods and management experience, so as to accelerate and promote the transformation and upgrading of the domestic service outsourcing industry.
10. Increasing financial support. The existing policies of fiscal funds shall be improved, the arrangements and use orientations of funds shall be optimized, the support methods shall be improved, more support shall be provided for the international service outsourcing business, and the research and development of international service outsourcing, personnel training, certification and public services, among others, shall be encouraged. The guiding role of fiscal funds as leverage shall be maximized, and through the establishment of guiding funds for the international service outsourcing industry and other market-oriented support methods, the investment of more social funds shall be arranged for enterprises undertaking the international service outsourcing business, and the expansion of service exports shall be promoted.
11. Improving tax policies. The scope of advanced technology service enterprises subject to the preferential tax policies for payment of enterprise income tax at the reduced tax rate of15% and pre-tax reduction of the part of the personnel educational expenses not exceeding 8% of total salaries shall be expanded in the areas and fields. According to the layout of service outsourcing industry clusters, overall consideration shall be given to eastern, central and western cities, and the number of service outsourcing demonstration cities in China shall be increased from 21 to 31 in an orderly manner. The zero value-added tax rate and tax exemption policies shall apply to international service outsourcing.
12. Strengthening financial services. The investment and financing channels of service outsourcing enterprises shall be expanded. Under the principle of controllable risks and sustainable business, financial institutions shall be encouraged to innovate in financial products and services which comply with supervision policies and are tailored to characteristics of the service outsourcing industry, and promote the pledge of accounts receivable and the pledge of patents, copyright and other intellectual property rights. Policy-based financial institutions shall be given support to develop in an innovative manner in accordance with laws and regulations under the guidance of relevant departments and regulatory departments, more support shall be provided for service outsourcing enterprises to explore the international market, carry out overseas mergers and acquisitions and conduct other businesses, and the construction of key service outsourcing projects shall be strengthened. Insurance institutions are encouraged to innovate in insurance products, improve insurance services, expand the scale and coverage of export credit insurance, and improve insurance underwriting and claims settlement efficiency. Existing fund policies shall be utilized to guide financing guarantee institutions in enhancing financing guarantee services for small and medium-sized service outsourcing enterprises. Qualified service outsourcing enterprises shall be supported in entering the small- and medium-sized enterprises board, the ChiNext, and the National Equities Exchange and Quotations for financing. Qualified service outsourcing enterprises shall be supported in expanding their financing channels by such means as the issue of enterprise bonds, corporate bonds, and debt financing instruments of non-financial enterprises, so as to achieve the diversification of financing channels.
13. Enhancing facilitation. The reform of the foreign investment approval system shall be deepened, the foreign investment facilitation shall be promoted, the recordation-based management mode shall be applied, the scope of confirmation shall be minimized, and the approval procedures shall be simplified. The level of customs clearance facilitation shall be further enhanced, and the customs supervision mode for service outsourcing shall be innovated in. The inspection and quarantine supervision mode for service outsourcing shall be innovated in, the approval procedures for those prototypes, samples and reagents required undertaking of the international service outsourcing shall be simplified, and classified management shall be applied, so as to provide customs clearance facilitation. The implementation of foreign exchange administration facilitation measures shall be accelerated, qualified service outsourcing enterprises may apply for participating in the pilot program of the foreign exchange administration of overseas investment in service outsourcing, and the pilot program shall be researched and promoted in a timely manner. The use of RMB for settlement in cross-border trade and investment shall be encouraged. For high-level foreign management and technical personnel engaged in the international service outsourcing business, their entry and exit and residence shall be facilitated. The level of international communication services shall be improved, and primary telecom carriers shall be encouraged to provide convenience for the network access and international line lease of the service outsourcing enterprises.
IV. Improving service guarantee
14. Building a legal business environment. The legal system for the service outsourcing industry shall be researched and improved so as to promote industry development and regulate business activities. National security shall be effectively protected and illegal activities such as divulging state secrets intentionally or negligently and endangering national security shall be subject to legal liability in accordance with the law. The law enforcement and supervision on copyright, patents, trademarks and other intellectual property rights in the services outsourcing field shall be intensified. The credit records and credit rating system for service outsourcing enterprises shall be established, breach of faith shall be punished and frauds shall be suppressed, and the building of the integrity system for service outsourcing enterprises shall be improved. In the regions where the conditions are ripe, local legislation shall be encouraged, and the local regulations and the rules of local governments on the service outsourcing industry shall be issued at appropriate time.
15. Improving public services. China's embassies (consulates) stationed aboard shall intensify the guidance and coordination in the overseas cooperation of service outsourcing enterprises, take the initiative to strengthen communication with the domestic competent authorities, and provide effective information and policy suggestions in a timely manner. The role of industry associations shall be maximized, the levels of service and promotion shall be improved, industry self-regulation shall be strengthened, the service and talent standards shall be researched and formulated, and the brand of “Chinese service” shall be built. Existing service outsourcing exchange and cooperation platforms shall be fully utilized to attract multinational companies to the transfer of the international service outsourcing business, and research institutions, chambers of commerce and industry associations, universities and enterprises shall be encouraged to carry out practical cooperation in various forms. The public information services for service outsourcing enterprises shall be strengthened, and the international and domestic market dynamics and policy information shall be released in a timely manner.
16. Strengthening statistical analysis system. The connotation and denotation of the service outsourcing industry shall be defined in a scientific manner, and the statistical indicators and statistical systems for the service outsourcing industry shall be improved. The service outsourcing statistical information system shall be strengthened. The statistical monitoring function shall be strengthened, and the monitoring and early warning system for the service outsourcing industry shall be promoted. The service outsourcing information sharing mechanism between the relevant departments shall be established and improved. The exchange and cooperation of data and information between international organizations, research institutions and industry associations shall be strengthened, and the statistical data about service outsourcing shall be released on a monthly basis.
All regions and departments shall fully understand the significance of promoting the accelerated development of the service outsourcing industry, strengthen organization and leadership, establish working mechanisms, strengthen inter-departmental collaboration and vertical and horizontal interaction, and effectively implement all tasks specified in these Opinions and achieve concrete results. The Ministry of Commerce shall strengthen overall planning and coordination, assess the development of the service outsourcing industry in a scientific manner jointly with relevant departments, conduct follow-up analysis and supervisory inspection on the implementation of these Opinions, and report major issues and circumstances to the State Council once every year.
Annexes:
1. Division and Schedule of Key Tasks
2. 21 Service Outsourcing Demonstration Cities in China
State Council
December 24, 2014