58.8% is a normal figure, but it is of extraordinary significance in 2017 because it appeared twice in the performance review of Chinese economy.
The contribution of the added value of the tertiary industry to GDP growth reached 58.8%, while the contribution of the final consumption expenditure to the growth of the GDP also reached 58.8%. Ning Jizhe, Director of the National Bureau of Statistics, said that in terms of industrial structure, China has shifted from relying mainly on industry to service and industry. In terms of the demand structure, China has shifted from investment-driven to investment and consumption-driven.
Since the opening of the 18th CPC National Congress, China’s economy has showed strong resilience when facing downward pressure. It continues to deepen the supply-side structural reform and optimize its economic structure.
“What is particularly gratifying is that the contributions of the services and consumption to GDP growth did not decline as the GDP decreased in recent years,” said Zhang Yansheng, Chief Researcher of China Center for International Economic Exchanges. This means that the inherent laws of China’s economic development is changing. In simple terms, China is moving towards a stage of high-quality development.
Zhang Yansheng said that before 2012, the secondary industry made the biggest contribution to GDP growth, which can be seen as a reflection of China’s rapid economic growth. With the economic and social development, the tertiary industry has started to play a more important role.
The manufacturing industry become more service-oriented is a very important index assessing the supply-side structural reform. As the supply-side structural reform continues to develop, the tertiary industry will make a greater contribution to the national economy.
The emergence of the self-service supermarket, online payment and cross-border e-seller demonstrate that the consumption habit of China’s consumers have been constantly changing since the reform and opening up started 40 years, especially since the 18th CPC National Congress. The Customers now demands for more diversification, individualization and better quality of life.
“The preference of consumers will directly affect producers’ production,” said Zhang Yansheng. The major social contradiction in China has been translated into the contradiction between the growing need for a better life and the unbalanced development. The pursuit of a better life will become an important impetus for encouraging innovation among enterprises.
Zhang Yansheng said that the two 58.8% in 2017 are good sign. At present, China is in the critical period of transforming its mode of development, optimizing its economic structure and changing its growth momentum. China should persistently promote the supply-side structural reforms and build a modern economic system.