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Success of efforts to restructure, upgrade economy

Updated: Aug 10,2015 4:29 PM

The development of Inspur Group, a computing service company, in East China’s Shandong province is a symbol of the country’s successful efforts to restructure and upgrade its economy.

The cloud computing center set up at Inspur is Asia’s largest fourth-generation database. The cloud computing service it offers helps different government departments to share information, and also enables the police to track down suspects faster and the public to check public transport schedules.

The company used to sell equipment, which was not very profitable, but it now offers computing and data services, leading to a rapid improvement of its core competitiveness, according to Su Pishu, chairman of Inspur.

The company has already set up cloud computing centers in a total of 22 cities in China.

Services took up 49.5 percent of the country’s gross domestic product in the first half of 2015, 5.8 percentage points more than manufacturing, and contributing significantly to the 7-percent growth of the economy in the first half of the year.

“The country’s main economic indices rallied in the first half of the year. This shows to some extent that the policies the government issued to restructure and upgrade the economy are paying off,” said Zhang Xiaoqiang, permanent vice chairman of the China Center for International Economic Exchanges.

Another example of the development of services is Qingyanliu Village in Yiwu, East China’s Zhejiang province. Home to more than 2,800 online stores and about 30 express delivery companies, the village has become a hub for online shopping business - and there are more than 200 similar villages around the country.

Due to the strong impetus of online shopping, consumption accounted for 60 percent of economic growth in the first half of the year.

Additionally, more than 80 percent of newly registered companies in the first half of the year focus on offering services.

The country needs to spend more effort on not only keeping its economic growth but also restructuring its economy, said Chen Dongqi, vice president of the Academy of Macroeconomic Research of the National Development and Reform Commission.