BEIJING, Jan. 14 (Xinhua) -- The signing of the China-ASEAN agreement on trade in services is a major step forward in building the China-ASEAN free trade area, said a spokesperson with the Chinese Commerce Ministry here on Sunday.

    China and the Association of Southeast Asian Nations (ASEAN) countries signed The Agreement on Trade in Services of the China-ASEAN Free Trade Area in Cebu, the second largest city of the Philippines, on Sunday.

    The spokesperson said China and ASEAN countries would further open the services sector, providing improved market access for each other following the agreement.

    The signing was another major achievement in China-ASEAN economic cooperation and trade, said the spokesperson, adding it has laid the foundation for the completion of the China-ASEAN FTA on schedule.

    Under the agreement, China will allow auto maintenance companies from ASEAN countries to set up wholly-owned subsidiaries in China. ASEAN countries can set up foreign-owned sewage treatment and garbage disposal companies in China.

    Singapore and Brunei have opened the maritime transport sector to Chinese companies and some ASEAN countries have opened the hotel and catering sector, allowing Chinese companies to set up joint ventures there.