Service Industry

Since the end of the 1970s, China's service industry has developed rapidly. It is reflected in two aspects. First, the scale of service industry is expanding. Statistics show from 1978 to 2002, China's service industry's added value increased from RMB86 billion to RMB3.45trillion, 39 times up. Its average growth rate stood at 10%, higher than the GDP growth rate during the same period. Service industry's added value accounts for 33.7 % in 2002 from 21.4% in 1979. In 2003, although SARS, floods or draught affected China's service industry, it still had rapid development.

Second, China's service industry has become a main channel to attract social employment. The number of service industry personnel has increased to 210 million in 2002 from 48.9 million in 1978. The net increase of personnel in service industry is twice that of the secondary industry.

Currently, China's service industry includes business on food and drink, tourism, retail sales, finance, insurance, information, transportation, advertisement, law, accounting, and real estate management. According to China's development plan, by 2020, service industry will account for more than 50% of GDP instead of the present one third.