As a result, foreign-funded businesses now care more about receiving equal treatment with Chinese companies, which are expecting a level playing field as they expand globally, Ding added. 

Timothy Stratford, managing partner in Covington & Burling LLP's Beijing office and a former U.S. assistant trade representative, said he welcomes China's move to further open up its financial and modern service industries and believes that China's service sector will receive a boost as a result of the move. 

"We normally think of China as a factory to the world, but we don't think of it so much as a service provider to the world," said Stratford. 

If China can open up more in various service sectors the way they have opened up in manufacturing, it will be a significant development for its own service industry while allowing for reciprocity between Chinese companies and foreign companies, Stratford added. 

Chinese and foreign players could also benefit from the liberalization of services, according to a McKinsey report published during the Dalian event on July 2. "If services remained restricted, China will continue to operate at a productivity gap with developed economies, and $3 trillion to $5 trillion could be at stake from more or less global engagement in Chinese services, based on the company's simulation results."

In the wake of China's further opening up, Akahoshi said Japanese companies will try to shift and diversify their investments to incorporate more areas in the service sector, such as elderly care. 

"Japan is already an aging society, and China may follow suit in the next five to 10 years," he said. "By introducing our experience, both countries can solve this social issue."

Related

Go to Forum >>0 Comment(s)