Protectionism must be rejected and measures adopted to create jobs, as the world is fighting the financial crisis, officials and economists said.

"Liberalization of services is vital. ... Instead of creating barriers, we should liberalize services," said Esko Hamilo, undersecretary of state for external economic affairs at Finland's Ministry of Foreign Affairs.

Lena Johansson, director-general of Sweden's National Board of Trade, said: "Protectionism is even more harmful than it used to be. Goods these days are crossing borders several times before they become a final product." She also stressed the importance of more open cross-border trade in services.

Hamilo and Johansson were speaking at the China International Fair for Trade in Services in Beijing on Tuesday.

China ranks fifth in terms of trade-in-services exports globally. As a proportion of total exports, China's trade-in-services exports comprise "only 10 percent, while the global average is 20 percent", said Hu Jinyan, deputy head of the economic affairs department of the central government's Liaison Office in Macao.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, said that to develop China's trade in services, the government should adjust macroeconomic policies. He stressed the importance of innovation and new techniques, especially in manufacturing and logistics, to build up the nation's service value chain.

Hu said: "Innovation has multiple ways to influence services, such as through cloud computing, the Internet and e-commerce. These technologies will multiply the value added to services."

Job creation should also be an important part of services trade development, fair participants said.

Young people are crucial in the services industry, accounting for about 54 percent of the population of Uganda and 60 percent of Africa's total population, said Amelia Kyambadde, Uganda's minister for trade and industry.

She also emphasized the role of government in creating job opportunities through policy development and implementation as well as infrastructure construction.

Thierry Garnier, group vice-president and CEO of Carrefour Greater China, introduced Carrefour's strategy for job creation innovation, saying the retail industry must be recognized for its ability to innovate and create jobs. Carrefour has made progress and has benefited greatly from its localization strategy.

In 2000, it established a training center teaching corporate culture and professional skills, including catering and food safety education. A total of 12,000 employees completed training at the center last year, and 20,000 people will enroll in the program this year.

Carrefour also seeks opportunities with local governments. It was the first supermarket chain to work with the Chinese government on a program to ensure food safety. "We sent our purchase staff to agricultural provinces to provide training for local farmers," Garnier said.

"We plan to set up laboratories in our supermarkets for quality control. The plan, for example, can help measure the content of heavy metals in fish. These laboratories will bring a lot of jobs," he said.

Clas Neumann, senior vice-president and head of SAP Labs Network, said high-end talent is in great demand in the services sector, especially innovative thinkers.

Most participants said small and medium-sized enterprises can play a bigger role in creating jobs.

Contact the writers at liaowei@chinadaily.com.cn and michaelthai@chinadaily.com.cn

(China Daily USA 05/29/2013 page8)