Chinese President Xi Jinping has directed that the country’s service industry should be developed through a demand-driven approach focused on comprehensive reform and technological innovation, according to a report from the state-run Xinhua News Agency on Wednesday. The remarks were made during a symposium with business executives and experts in Jinan, the capital of Shandong province.
According to the Xinhua report, Xi emphasized the need to build a high-quality and efficient service industry. He stated that development should be driven by domestic demand and coordinated with the modernization of agriculture and the advanced manufacturing sector. The directive also highlighted the importance of using innovation, particularly in digital technology and artificial intelligence, to create new business models within the service sector.
The symposium was part of a broader inspection tour of Shandong, an eastern coastal province. During the meeting, Xi called for further reforms to address systemic barriers and create a more unified domestic market. He also underscored the role of the service industry in improving people’s livelihoods, citing areas such as healthcare, education, elder care, and tourism as key for development.
Xi’s statements on the service sector come as Chinese officials navigate a complex economic environment. The government has set a GDP growth target of around 5% for 2024, a goal that relies on stimulating domestic consumption and investment. The country’s economy faces challenges including a prolonged downturn in the property sector and varied levels of consumer and business confidence.
The service industry is a significant component of China’s economy. According to China’s National Bureau of Statistics, the sector, also referred to as the tertiary industry, accounted for 54.6% of the country’s gross domestic product in 2023.
The Xinhua report detailed that Xi urged officials to concentrate on both developing emerging service sectors and transforming traditional ones. The stated goals of the initiative are to increase the global competitiveness of China’s service industry and better meet the needs of the population.
