The US, by right of its competitive advantages, has become the biggest beneficiary of the opening of services by China, Vice Premier Wu Yi said in Washington Thursday.

 

In the past five year, for example, shares held by American financial institutions in Chinese banks have taken up nearly 40 percent of the total FDI (foreign direct investment) used by China's banking industry, Wu said while delivering a speech at a welcome banquet hosted by six American organizations.

 

According to Wu, the number of representative offices of American law firms in China has accounted for nearly 45 percent of the total of overseas firms, and their business revenues have accounted for more than 50 percent of the aggregate.

 

The number of American companies awarded a direct selling license has been 55 percent of FIEs (foreign invested enterprises)in China.

 

China has imported 121 American movies on both lump-sum and revenue-sharing basis, accounting for 52 percent of all films imported and the share of imported American AV products has always been between 50 percent to 75 percent.

 

Of the nearly 50,000 American invested enterprises in China, over 90 percent have obtained right to trading and to distribution, the vice premier said.

 

Wu said that the rapid development of services market in China and the notable advantages of modern American services sector mean enormous cooperation potential enjoyed by the two sides.

 

"We agree to the US proposal on developing an innovative and effective services sector," she said. "But at the same time, we want to draw the American attention to the fact that China is a developing country, whose modern services industry starts late and is still at a very low level."

 

Further opening up of China's services sector can only be realized steadily and safely in light of its national conditions and cannot be achieved overnight, Wu said, adding "acting with undue haste will harm both sides' interests instead."

 

China is willing to strengthen cooperation with the United States in services on the basis of equality, mutual benefit and complementarity, addressing problems emerging from bilateral cooperation through consultation and striving for a balanced outcome, the vice premier said.

 

The six organizations are the US-China Business Council, the US Chamber of Commerce, the China General Chamber of Commerce-USA, the American Bankers Association, the American Council of Life Insurers and Financial Services Forum.

 

(Xinhua News Agency May 25, 2007)