BEIJING — China has huge potential to shore up industrial development and economic growth, according to a senior official with the top economic planner.
Despite the febrile environment in the traditional industry sector, the service and high-tech sectors are emerging as strong growth drivers and are helping the economy maintain growth at a medium-high pace, Wang Changlin, a senior economist with the National Development and Reform Commission, told Guangming Daily.
The traditional industrial sector, such as heavy and chemical industries, and export-led industries, have seen shrinking growth and remarkable downward pressure due to flagging demand in recent years, Wang remarked.
The tertiary industry, however, grew 8.4 percent year on year in the first half (H1) of 2015, outpacing the general GDP growth, and up 0.4 percentage points compared to the same period last year, according to data from the National Bureau of Statistics (NBS).
The service sector, a major tertiary industry player, accounted for almost half of China’s GDP in the first six months, contributing around 81 percent to total GDP growth.
Consumption also played a bigger role in boosting growth by contributing 60 percent to GDP growth in H1, up 5.7 percentage points compared to the same period last year, the NBS data showed.
China’s new economic growth areas are taking shape and the economic structure is improving, Premier Li Keqiang said at the Summer Davos meeting earlier this month, adding that consumer demand for information, cultural and health products, as well as tourism, were booming.
Traditional services such as real estate, logistics, wholesale and retail businesses, have seen shrinking growth in recent years. But new growth areas inside the sector, including finance, cultural tourism, e-business and information consumption, are rapidly growing into an important pillar for the economy, Wang said.