By Ren Xingzhou, Wang Wei & Liu Tao, Research Institute of Market Economy of DRC

Research Report No 184, 2015 (Total 4869)

Abstract:

During the 13th Five-Year Plan period, China's economic development would enter the stage of new normal. The development of service industry is facing some new requirements along with the fulfillment of basic industrialization and the transformation and upgrading of manufacturing industry. Change in demographic structure is both a pressure and an opportunity for the development of service industry. The rapid advance of new-type urbanization and a new round of technological revolution will provide adequate room for the development of service industry. The “weak links” relating to the development of service industry need to be addressed in order to cultivate new international competitive edge and highlight China's influence. Policy options are offered as follows: relax market access for service industry, transform supervision modes, cultivate an institutional environment that encourages innovation while tolerating failure, nurture and develop diversified service participants; expand investment in human capital of service industry, improve taxation policies conducive to the development of service industry, bring forth different types of financial services, expand open-up to domestic and overseas markets and improve infrastructure facilities of service industry; speed up the building of an environment focusing on fair sharing of economic benefits and orderly competition, and improve the statistical system of service industry and service trade.

Key words: service industry, expanded and improved development, policy options, 13th Five-Year Plan