The government of south China's Guangdong Province aims to develop the ratio of its service industry in the economy from 39.8 percentin 2003 to 45 percentby 2010, and to 50 percentby 2020, in a bid to strike an optimal economic structure.
The goal was set in the provincial government's No 1 Circular this year, especially about the development of the service industry.
A well-developed service industry is pinpointed in the circular as crucial to economic restructuring because of the greater sustainability it leads to, compared with a growth based heavily on industrialization. It will also better support the manufacturing sector of the province.
The government has set the goal of doubling by 2010 and quadrupling by 2020 the gross domestic product of Guangdong.
The province's economy accounts for 12 percentof that of the Chinese economy.
However, the service industry of the province, output from which amounted to 535 billion yuan (US$64 billion) in 2003, is seen as insufficient in terms of size, quality, structure and innovation. A report on Guangdong competitiveness issued by the government's think-tank at the end of last year shows the service industry in the provincial economy has hardly grown in the past few years.
The provincial government will set up a special group to lead the efforts to strengthen the service industry and allocate special funds to it, the circular said.
In order to support the development of service industry, the government will enhance relatively strong sectors including transportation, tourism, real estate, financial services and distribution.
In the financial services sector, for example, the province will step up co-operation with Hong Kong, attract more overseas financial institutions and encourage strong local firms to set up branches in Hong Kong.
Cutting the number of toll gates on the province's highways, reforming the infrastructure investment system and formulating various standards for the logistics sector are some of the ways the transportation sector will be boosted.
In the logistics sector, the provincial government will better consolidate various resources, with the Guangzhou and Shenzhen as the hubs.
Meanwhile, the sectors of information services, technology supporting services and culture are listed as promising industries.
The government will improve the management of the service industry and the consumer market.
(China Daily February 25, 2005)
