By Li Zhineng　

Date: 2004/07/27

Abstract: 　　

From the angle of the multi-national companies who are relocating their service industry, China is facing challenges in terms of competitiveness in receiving business. A common presumption is that China is advantageous in the market potential and abundant labor resource; however the multi-national companies see almost none of them. Some key elements in forming competitive power in the service industry, such as investment and procedure management in the IT technology, are not given adequate emphasis by China. The core of the challenge is that China cannot match the international service industry reallocation against the scenario of globalization with a mentality of building a world manufacture center.