Core Viewpoint - The new Foreign Trade Law systematically upgrades international service trade by establishing a negative list management system for cross-border service trade, providing legal support for emerging fields such as digital trade and finance [1][2] Group 1: Legal Framework and Implementation - The new law incorporates the negative list management system for cross-border service trade, marking a significant step in China's institutional opening in the service trade sector [1][3] - This legal framework aligns with international high-standard trade rules, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA) [1] - The law reflects China's commitment to fulfilling obligations under the Regional Comprehensive Economic Partnership (RCEP), transitioning from a positive list to a negative list management model for service trade [2] Group 2: Focus on Cross-Border Service Trade - The negative list in the new law specifically targets cross-border service trade, applying uniformly to both foreign and domestic enterprises, thus creating a unified regulatory framework [2][3] - The law signifies a shift from an "element flow type" to a "rules and system type" in service trade, enhancing the legal certainty and operational scope for businesses [3] Group 3: Support for Digital and Green Trade - Digital trade and green trade are explicitly included in the legal framework, with the law supporting the development of new business models such as cross-border e-commerce and overseas warehouses [3][4] - The law mandates the establishment of corresponding rule systems for digital trade and green trade, promoting international recognition of digital certificates and electronic signatures [3][4] Group 4: Compliance and Regulatory Requirements - The new law emphasizes compliance through "full-chain supervision," requiring businesses to adhere to strict regulations regarding cross-border service trade activities [5] - Companies must ensure compliance with data security and intellectual property regulations, as the law outlines specific obligations related to data protection and the handling of intellectual property rights [5]

Core Viewpoint - The article emphasizes the importance of reducing the negative lists for service trade to promote institutional openness and enhance the potential of service trade in China, with a projected total service trade import and export volume exceeding 7.5 trillion yuan in 2024, marking a 14.4% year-on-year growth and crossing the $1 trillion mark for the first time [1][2]. Group 1: Service Trade Negative Lists - The three main negative lists for service trade include the Market Access Negative List (2025 version), the Foreign Investment Access Negative List (2024 version), and the Cross-Border Service Trade Negative List (2024 version) [2]. - The number of items in the Market Access Negative List has been reduced from 117 in 2022 to 106, while the Foreign Investment Access Negative List has decreased from 31 to 29 restrictions, achieving a "zero" breakthrough in manufacturing sector openness to foreign investment [3]. - The Cross-Border Service Negative List currently has 71 items in the national version and 68 in the free trade zone version, indicating a continuous reduction in restrictions and a signal of reform in key service industries such as finance, healthcare, and the internet [3]. Group 2: Two-List Connection - The exploration of the "two-list connection" aims to unify the Market Access Negative List and the Foreign Investment Access Negative List, creating a single access list for foreign investment, which will streamline the approval process and reduce compliance costs for foreign enterprises [4]. - This connection is expected to enhance market transparency, stability, and fair competition, aligning with international high-standard trade agreements such as the CPTPP and DEPA [4][5]. Group 3: Role of Free Trade Zones - Free trade zones, such as those in Shanghai and Hainan, are positioned as experimental grounds for institutional innovation, allowing for the gradual relaxation of market access restrictions in key service sectors [5]. - The implementation of national treatment for foreign enterprises is crucial for ensuring that they not only enter the market but also thrive and develop sustainably [5]. Group 4: Optimization of Cross-Border Service Trade - The optimization of the Cross-Border Service Negative List is seen as a critical breakthrough for institutional openness in service trade, with plans to further reduce restrictions on cross-border provision, overseas consumption, and the movement of natural persons [7]. - The upcoming regulations allowing foreign personnel to stay for 30 days in designated business cooperation zones represent a significant step in easing restrictions on natural person movement [7]. Group 5: Future Directions - There is a proposal to align the Cross-Border Service Negative List with the other two lists, potentially leading to a "three-list integration" that would create a unified management system for all market participants [8]. - The gradual transition from "three lists in parallel" to "two lists connection" and eventually to "three lists integration" reflects China's commitment to advancing institutional openness and enhancing the international competitiveness of its service sector [8].

Core Insights - The State Administration of Foreign Exchange reported that in April 2023, China's goods and services trade reached 43,706 billion yuan, a year-on-year increase of 6% [1] - The trade surplus in goods was 4,464 billion yuan, while the services trade recorded a deficit of 1,138 billion yuan [1] - The service trade sector is increasingly becoming a key driver for China's foreign trade, with significant growth in knowledge-intensive and travel services [1] Group 1: Service Trade Performance - In 2024, the total service trade import and export volume is expected to exceed 7.5 trillion yuan, surpassing 1 trillion USD, maintaining China's position as the second-largest globally [1] - Travel services, as a traditional strength, are experiencing rapid growth due to policy relaxation and rising consumer demand, becoming the largest sector in service trade [1] - Emerging service sectors such as digital culture, online education, and cross-border healthcare are gaining traction, characterized by high added value and strong penetration [1] Group 2: Challenges in Service Trade - Service trade is primarily concentrated in eastern regions like Beijing, Shanghai, and Guangdong, while central and western provinces face challenges due to weak industrial foundations and talent shortages [2] - There is a lack of internationally influential domestic enterprises and service brands in high-end knowledge-intensive services such as legal, financial, and consulting services, indicating a need for structural optimization [2] Group 3: Strategic Recommendations - To enhance service trade quality, it is essential to deepen institutional openness and create a higher-level open environment, including improving the negative list system for cross-border service trade [2] - Encouraging manufacturing enterprises to transition to service-oriented models and developing integrated service export modes can expand the service value chain [3] - Strengthening digital capabilities and building platform-based service capacities through advanced technologies like 5G and AI will diversify and enhance service delivery methods [3] Group 4: Talent and Standards Development - Establishing a training system for composite talents in service trade and promoting cooperation among universities, industry associations, and enterprises is crucial for developing specialized courses [4] - Building a cross-border service talent certification system and enhancing the service trade standard system will improve China's influence in global service governance [4]

Core Points - The Qianhai Shekou Free Trade Zone will promote institutional opening of service trade, facilitating cross-border flow of factors and expanding international markets [1] - The implementation of a negative list for cross-border service trade will allow foreign individuals to engage in securities investment consulting, futures trading consulting, and open securities accounts [1] - The CEPA service trade agreement will be implemented to support Hong Kong and Macau banks in conducting card business and allow Hong Kong investors to invest in film production, enhancing the level of service trade liberalization with Hong Kong and Macau [1]