CDB to offer 5 bln yuan to support construction of service outsourcing bases

The China Development Bank (CDB) will issue 5 billion yuan worth of credit to support construction in five cities, said Chinese Minister of Commerce Bo Xilai in Beijing Monday.

The minister said at the inauguration ceremony for the five cities, which are Chengdu, Xi'an, Shanghai, Shenzhen and Dalian, that the ministry will take measures to promote the fast growth of service outsourcing in the next five years.

Under the country's 6th Five-Year (2006-2010) plan, China aims to build service outsourcing bases in 10 cities, encourage 100 multinationals to outsource services from China and foster 1,000 large and medium-sized service outsourcing enterprises.

China strives to increase its service outsourcing export volume by four folds in 2010 compared with 2005.

Currently, the global service outsourcing market stands at between 300 billion and 500 billion U.S. dollars. The market is expected to reach 1 trillion dollars in 2008.

In 2005, China's export of service outsourcing was 900 million dollars.

According to a report by the United Nations Conference on Trade and Development, China is already a favorite choice for multinationals' overseas research and development (R&D) and could build on that to provide them with a range of outsourced services.

Source: Xinhua