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China's service industry is expected to enter a period of fast growth, says a blue book issued by the Institute of Finance and Trade Economics (IFTE) of the Chinese Academy of Social Sciences Wednesday.
According to the blue bo ok entitled Service Industry in China: Growth and Structure, the service industry has already seen fast expansion along with the country's reform and open-up drive over the past more than two decades, with its added value accounting for 34 percent of China's gross domestic product (GDP) in 2002, compared with 21 percent in 1980.
Jobs created by the industry also jumped from 13 percent of the total in 1980 to 29 percent in 2002.
"However, the development of the service industry is not fast enough compared with that of the manufacturing industry," said Jiang Xiaojuan, director of the IFTE.
An survey of businesses launched by multinational companies in China conducted by the institute shows the slow development of the service industry has become a major factor affecting the competitiveness of China's manufacturing industry.
However, as China pays more attention to the service industry in its renewed efforts to push forward reform and opening up, the service industry will enter a period of fast growth when China begins to implement its 11th five-year plan for 2006-2010, she said.
Jiang also based the forecast on China's gradual opening of the service industry as it has committed to the World Trade Organization.
At present, the trades that have a high threshold for market access and enjoy government monopoly mainly concentrate in the service industry, such finance, telecommunications, railways, transportation, education and health care.
The lack of competition in these sectors has resulted in poor service quality but high charges, which impedes consumption and the self-development of these sectors, said Jiang.
According to the blue book, the Chinese people's rising standards will also boost their demand for modern services like tourism, higher education and body shaping.
(Xinhua News Agency May 28, 2004)
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