China will encourage outsourcing in the service industry by giving foreign-invested outsourcing enterprises preferential tax policies.

Minister of Commerce Bo Xilai made the comment at a working conference on National Economic and Technological Development Zones on Tuesday.

He said the future global service outsourcing market will be more competitive and China will try to attract foreign investment to boost the industry.

Foreign-invested outsourcing companies will enjoy the same favorable tax polices as industrial and high-tech enterprises, which can have their enterprise income tax reduced by up to 15 percent.

Service outsourcing means a company invites another company to operate on one or several sections of its service business.

The business model is often seen in telecommunications, financial and software industries.

(CRI.com December 15, 2004)