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China's outsourcing industry surges in H1
(chinadaily.com.cn)
Updated: 2009-07-30 14:59

Contract value of China's outsourcing industry rose 32.5 percent to $2.56 billion in the first half of 2009, the Ministry of Commerce (MOC) told a press conference today.

There were over 1,400 newly incorporated outsourcing enterprises in the first half, and as many as 297,000 people joined the industry during the same period.

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Sun Peng, deputy chief of the MOC's Department of Foreign Investment Administration, attributes the upsurge in the industry to the following factors: the outsourcing industry enjoys a sound investment environment in China, the country offers a well-built infrastructure, and abundant talents in the hi-tech sector, and there is rising domestic demand in the industry.

Local governments at different levels provide incentive policies for the outsourcing industry, as it is regarded as a means to switch their economic structure in a hi-tech and service-oriented fashion, instead of relying on labor-intensive industries.

The added cost pressure from the global slowdown also drives foreign firms to transfer their non-core businesses to China, Sun added.