China has announced a series of tax breaks and subsidies to encourage the growth of service outsourcing. According to a draft released by the Ministry of Commerce, China will launch a pilot program in 20 cities to boost the development of the service outsourcing industry.

The draft has already been approved by the State Council. It says businesses involved in IT, training, and production materials procurement are eligible for these support measures. Logistics, and advertising companies are also qualified. It's estimated that the international service and software outsourcing business will hit 1.6 trillion US dollars by 2010.

(CCTV February 3, 2009)