Thanks to a series of administrative measures and incentives, SIP is seeing a burgeoning and innovative development of trade in services, which is becoming a new driver for local economic growth.

 

Philips, a Dutch multinational conglomerate engaged in the electronics, healthcare and lighting markets, opened its service arm Philips Global Business Services (Suzhou) in SIP in November to provide financial, HR, supply chain and customer services targeting the Asia-Pacific market. The new facility can enjoy a lump-sum subsidy of up to RMB 300,000 granted by local authorities to independent legal entities established by Fortune 500 enterprises or Global Outsourcing 100 enterprises since January 1, 2018 to deal with service trade and shared services. Besides, it can also benefit from SIP authorities’ other support concerning tax, staffing, financing and marketing.

Actually, many foreign-funded enterprises in SIP are turning to the service market, while more and more manufacturing enterprises have made services part of their business.

SIP authorities believe that the prosperity of service trade will help expand economic opening-up, increase job opportunities and accelerate industrial restructuring and therefore enable SIP to quicken its pace toward a world-class high-tech park.