State-Level Policies / Regional-Level Policies
The prosperity of the modern service industry represented by outsourcing is an important manifestation of a country’s overall strength and socioeconomic development. The government is formulating concrete policies on the basis of a clear positioning to seize the opportunity of international industry transfer and promote the development of China’s outsourcing industry.
Premier Wen Jiabao emphasized on March 5, 2007 in the Fifth Session of the Tenth National People’s Congress that “China should actively participate in international outsourcing and upgrade its service industry development.”
In the Outline of the Eleventh Five-Year Plan for National Economic and Social Development enacted in March 2006, it was clearly stated that “China should accelerate the change of foreign trade growth pattern and build a number of outsourcing bases to undertake the transfer of the international service industry.”
In line with the action plan of the “1,000-100-10 Project” led by the MOC, a group of major cities will be selected as primary outsourcing cities to undertake offshore outsourcing by the MOC, the MII, the MOST, the MOE, and the MOF. These cities will enjoy support from China’s central government in macroeconomic policies, planning, investment, coordination, and other related aspects. In addition, special-purpose funds would be earmarked for the construction of public information platforms, the development of HR, and the improvement of infrastructure and investment environments. The “1,000-100-10 Project” adopts a model of “primary outsourcing city + showcase area” jointly appointed and built by the MOC and local provincial governments.
A primary outsourcing city refers to a major city with offshore outsourcing services as its dominant industry that conforms to the overall plan of the region for national economic and social development and serves as a role model for the industry and the region.
An outsourcing showcase area refers to an area in a primary outsourcing city with a cluster of key SPs and a scale of economy that can play a pivotal role in promoting the outsourcing business of the primary outsourcing city and surrounding areas. An outsourcing showcase area is often an area with specific economic functions such as a national economic and technical development zone, a high-tech park, or a software park.
To date, one state-level outsourcing showcase area—the Suzhou Industrial Park—and 11 primary outsourcing cities, namely, Dalian, Chengdu, Shanghai, Xi’an, Shenzhen, Beijing, Tianjin, Nanjing, Hangzhou, Jinan, and Wuhan have been selected.
State-Level Policies to Promote the Service Outsourcing Industry
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State- Council Policies |
1 |
Opinions of the State Council on Accelerating the Development of the Services Sector |
SC [2007] No.7 |
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2 |
Notice of the State Council on the Implementation of Certain Complementary Policies Relating to Long-term Development Planning Memorandum for Science and Technology of PRC (2006-2020) |
SC [2006] No.6 |
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3 |
Long and Medium term Development Planning Memorandum for Science and Technology of PRC (2006-2020) |
SC [2005] No.44 |
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4 |
The Action Plan for the Rejuvenation of the Software Industry |
SC General Office Notice [2002] No.47 |
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5 |
Notice of the State Council on Printing and Distributing Several Policies for Encouraging the Development of Software and Integrated Circuit Industry |
SC [2000] No.18 |
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6 |
Circular of the Ministry of Finance, the Ministry of Science and Technology of the People’s Republic of China, Provisional Measures for Financial Management of Technical Innovation Fund for Science and Technology Type SMEs |
SC General Office Notice [1999] No.47 |
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Policies of Ministery of Commerce (MOC) and related Ministeriums |
1 |
Circular of the Ministry of Commerce, the Ministry of Finance of the People’s Republic of China, on managing the fund to Support the Development of Enterprises Taking up International Service Outsourcing Business |
Ministry of Commerce, Ministry of Finance
[2007] No.343 |
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2 |
Circular of the General Office of the Ministry of Commerce of the People’s Republic of China, on Implementing the Statistical Report System of Service Outsourcing |
Ministry of Commerce, Trade of Service Department [2007]No.12 |
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3 |
Circular of the Ministry of Commerce of the People’s Republic of China, on Implementations of ‘Ten-Hundred-Thousand’ Service Outsourcing Program |
Ministry of Commerce: [2006] No:556 |
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4 |
Circular of the Ministry of Commerce of the People’s Republic of China, on Making Effects to Accomplish the Work of Enterprises Accreditation and Market Exploitation of Service Outsourcing Program |
Investment Administration, Ministry of Commerce:[2006] No:110 |
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5 |
Circular of the Ministry of Commerce of the People’s Republic of China, on Making Effects to Accomplish the Work of Talent Training in ‘Ten-Hundred-Thousand’ Service Outsourcing Program. | Investment Administration, Ministry of Commerce: Letter [2006] No:111 | |
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6 |
Circular of the Ministry of Commerce, the Ministry of Information Industry of the People’s Republic of China, on Relevant Issues of Initiating the Accreditation Work on Cities of Service Outsourcing Base in China. | Investment Administration, Ministry of Commerce: Letter [2006] No:102 | |
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7 |
Guiding Opinions of the Ministry of Commerce, the Ministry of Information Industry, the Ministry of Education, the Ministry of Science and Technology, the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation, the National Bureau of Statistics, the State Administration of Foreign Exchange of the People’s Republic of China, on Developing the Export of Software and Relevant Information Service. | Ministry of Commerce, Trade in Services, [2006], No.520 | |
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8 |
Circular of the Ministry of Finance, State Administration of Taxation, Ministry of Commerce, the Ministry of Science and Technology Concerning Pilot Work of the incentives to encourage service industries with advanced technology in Suzhou Industrial Park | Ministry of Finance [2006], No.147 | |
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9 |
Notice on Printing and Distributing the Administrative Measures for the Recognition of Key Software Enterprise within the Planning and Arrangement of the State | NDRC[2005]No.2669 | |
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10 |
Regulations on Assessment and Administration of Software Process Capacity and Maturity |
Certification and Accreditation Administrative Commission, [2005], No.4 |
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11 |
Measures for the Administration of International Market Developing Funds of Small-and Medium-Sized Enterprises. | Ministry of Finance, Enterprise Department, [2000], No. 467 | |
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12 |
The Implementation Details for the Management of the Funds for Small and Medium Sized Enterprises Exploring International Market. | National Development and Reform Commission,[2000], No.270 | |
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13 |
Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the Issues Concerning Tax Incentives for the Development of Software and Integrated Circuit Industries | Ministry of Finance, the State Administration of Taxation, [2000], No.25 | |
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14 |
Notice on Printing and Distributing "Certifying Standard and Managing Measures For Software Enterprises (For Trial Implementation)" |
Ministry of Information, [2000],No.968 |
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15 |
Circular Concerning the Relevant Issues of Software Exports |
National Development and Reform Commission [2000],No.680 |
[Source:Chinasourcing, en.chinasourcing.org.cn]
Regional-Policies on Primary Outsourcing Cities and Showcase Areas in China
In line with the action plan of the “1,000-100-10 Project” led by the MOC, a group of major cities will be selected as primary outsourcing cities to undertake offshore outsourcing by the MOC, the MII, the MOST, the MOE, and the MOF. These cities will enjoy support from China’s central government in macroeconomic policies, planning, investment, coordination, and other related aspects. In addition, special-purpose funds would be earmarked for the construction of public information platforms, the development of HR, and the improvement of infrastructure and investment environments. The “1,000-100-10 Project” adopts a model of “primary outsourcing city + showcase area” jointly appointed and built by the MOC and local provincial governments.
A primary outsourcing city refers to a major city with offshore outsourcing services as its dominant industry that conforms to the overall plan of the region for national economic and social development and serves as a role model for the industry and the region. An outsourcing showcase area refers to an area in a primary outsourcing city with a cluster of key service providers and a scale of economy that can play a pivotal role in promoting the outsourcing business of the primary outsourcing city and surrounding areas. An outsourcing showcase area is often an area with specific economic functions such as a national economic and technical development zone, a high-tech park, or a software park.
To date, one state-level outsourcing showcase area—the Suzhou Industrial Park—and 11 primary outsourcing cities, namely, Dalian, Chengdu, Shanghai, Xi’an, Shenzhen, Beijing, Tianjin, Nanjing, Hangzhou, Jinan, and Wuhan have been selected. The main local policies formulated by the governments of primary outsourcing cities include:
1. Suzhou: Circular on the Opinions Concerning the Promotion of Outsourcing Development in the Suzhou Industrial Park and Deepening of Pilot Policies for Technically Advanced Service Enterprises (www.sipoutsourcing.com)
2. Dalian: Circular of the Dalian Municipal People’s Government on the Publishing and Distribution of Implementation Opinions Concerning the Promotion of Outsourcing Development in Dalian (wjw.china-dalian.com)
3. Chengdu: Opinions of the Sichuan Provincial People’s Government on Accelerating the Development of the Outsourcing Industry, Opinions of the Chengdu Municipal People’s Government Concerning the Promotion of Outsourcing Development in Chengdu, and Preferential Policies of the Chengdu High-Tech Industrial Park to Accelerate the Development of the Software Industry (www.investchengdu.gov.cn/investcden/6/1/2/)
4. Shanghai: Opinions Concerning the Promotion of Outsourcing Development in Shanghai (www.investment.gov.cn)
5. Xi’an: Implementation Opinions of the CPC Xi’an Municipal Committee and the Xi’an Municipal People’s Government on Accelerating the Development of the Software Development Outsourcing Industry (www.xaonline.gov.cn)
6. Shenzhen: Circular on the Publishing and Distribution of Regulations on Accelerating the Development of Outsourcing in Shenzhen (www.szinvest.gov.cn)
7. Beijing: Opinions and Measures of the Beijing Municipality to Promote the Development of Outsourcing (www.bjmbc.gov.cn)
8. Tianjin: Circular on the Publishing and Distribution of Opinions Concerning the Promotion of Outsourcing Development in Tianjin and Provisions of the Tianjin Municipality on the Management of Funds for Outsourcing Development (www.tianjinsourcing.gov.cn)
9. Nanjing: Opinions of the Nanjing Municipal Government Concerning the Promotion of Outsourcing Development in Nanjing, Policies of the Nanjing Municipality to Further Accelerate the Development of the Software Industry and Interim Provisions of the Nanjing Municipality on Encouraging Large Domestic and Overseas Enterprises to Establish Headquarters or Regional Headquarters (english.njfiw.gov.cn)
10. Hangzhou: Opinions of the General Off ce of the Hangzhou Municipal People’s Government on Promoting the Development of the Outsourcing Industry in Hangzhou (www.hzsourcing.gov.cn)
11. Jinan: Opinions of the Jinan Municipality on Promoting the Development of the Outsourcing Industry and Interim Provisions of the Jinan Municipality on the Use and Management of Special-Purpose Funds for Outsourcing (www.qilusoft.org)
12. Wuhan: Opinions of the General Offi ce of the Municipal People’s Government on Promoting the Development of the Outsourcing Industry (www.wehdz.gov.cn)
