China should promote the development of the service sector, which will account for 72 percent of the GDP by 2030, according to a government think tank report issued on April 5.
The Chinese economy has entered a new period in which development is led by the service sector, yet the sector is still plagued by weak competitiveness and an unbalanced industrial structure, according to the National Academy of Economic Strategy (NAES) under the Chinese Academy of Social Sciences.
China’s service sector exceeded the industrial sector for the first time in 2013, reaching 46.1 percent of its GDP and signaling an improved economic structure. The proportion rose to 51.6 percent last year.
This came as the country has been trying to wean the economy off its overreliance on exports and investment and pushing it toward a growth model bolstered by consumer spending, innovation and the service sector.
The NAES expected the service sector to account for 59 percent of China’s GDP by 2020 and projected the proportion will grow to 66 percent by 2025.
To foster the sector’s development, the NAES advised the government to further open up the sector, encourage innovation and enhance protection of investors’ interests.