China creates $4.6b fund to spur service trade

BEIJING - China has launched an investment fund of 30 billion yuan ($4.6 billion) to guide the development of the service trade industry.

The government-led fund is aimed at facilitating the transformation of China's foreign trade patterns and fostering new growth momentum for the economy.

Approved by the State Council, the fund was jointly launched by the Ministry of Finance, Ministry of Commerce and China Merchants Capital Investment Co Ltd.

China will step up support for service trade businesses, build an effective cooperation mechanism and improve the use of resources, according to vice finance minister Hu Jinglin.

Trade in services refers to the sale and delivery of intangible products such as transportation, tourism, telecommunications, construction, advertising, computing and accounting.

China regularly registers a deficit in service trade due to huge domestic demand. The service trade deficit stood at 120.8 billion yuan in November 2017, up from 117.5 billion yuan in October, official data showed.