The Ministry of Commerce signed a “Memorandum on Promoting the Development of China’s  Outsourcing Service Industry” through a series of preferential policies in financing and direct cooperation with 22 multinational corporations including Procter & Gamble, Coca-Cola, Kodak, and Sony.
At present more than 70 Fortune 500 companies have preliminary agreements with the Ministry of Commerce, which wants these firms to speed up their offshoring to China, and is trying to get 200 well-known multinational companies to outsource to China by 2013.
Outsourcing services has become a cake which developing countries such as India, Russia, Ireland, and the Philippines are competing for. Recently, China has begun to catch up in the competition. The Ministry of Commerce points out that servicing outsourcers can promote employment and industrial upgrading, and suits China’s current economic development trend. The Ministry of Commerce is introducing a series of policies to promote outsourcing services, including tax incentives, labor hours system, and employment subsidies.