Huang Huahua, the governor of Guangdong Province, outlined the development plan for the service sector early this week, vowing it would be given top priority in the years to 2010.

 

Huang is expecting Guangdong's good service to help his province attract even more foreign investment to continue its rapid economic growth. Under the province's ambitious development plan, Guangdong's service industry will be developed to more than 45 percent of the economy in 2010 and more than 50 percent in 2020.

 

The plan also aims for more than 40 percent of the province's working population to be employed in the service sector by 2010.

 

In addition to tourists and visitors, Guangdong's service sector mainly deals with investors who set up production facilities, branches and subsidiaries in the southern Chinese province.

 

After decades of development, Guangdong lost its policy advantage on the use of foreign funds when the central government introduced more preferential policies for the country's inland provinces, regions and municipalities in recent years.

 

"Guangdong, which relies a great deal on foreign financial support for economic construction, will have to provide even better service to help lure foreign investors in the years ahead," Huang told a work conference on Guangdong's service development.

 

Facing fierce competition from home and abroad, Huang urged the province's authorities and cities to seize every opportunity to raise their work efficiency and improve service to investors in Guangdong.

 

According to local analysts, Guangdong will not face competition from other provinces, municipalities and regions if it lifts its service. The province already has an advanced expressway network and infrastructure.

 

Guangdong approved a total of 8,452 foreign-funded projects worth $15.35 billion last year. It used foreign investment of $14.51 billion in 2006, up 17.4 percent on the previous year.

 

Analysts attribute the province's sustained increase in overseas investment to its level of service. Guangdong's service sector industrial output was 1.06 trillion yuan in 2006.

 

(China Daily February 2, 2007)