Business / Industries

Services to give economy long-term boost

By Wei Tian in Shanghai and Hu Yuanyuan in Beijing and He Wei in Guangzhou (China Daily) Updated: 2014-04-17 07:20

The upper end of this range means an additional spending of approximately 26.9 trillion yuan ($4.3 trillion) over 2012 levels, said Mitch Barns, global CEO of Nielsen. Rising Chinese purchasing is characterized as one of the six mega trends shaping most of China's industries and driving much of its impact on the Western world, according to a new book by investor Jeffrey Towson and McKinsey and Co Ltd senior partner Jonathan Woetzel.

Services to give economy long-term boost
Services to give economy long-term boost 
As urbanization accelerates, China's consumer spending is becoming more like that of the West's middle class - the world economy's growth engine throughout the 20th century. China's urbanization is forecast to exceed 70 percent and contribute to 95 percent of GDP by 2030, according to Woetzel.

However, Lian Ping, chief economist with Bank of Communications Ltd, warned such prospects might be dragged by slower GDP growth.

"Employers are reluctant to increase employees' salaries in the shadow of slower GDP growth, and there may be less government expenditure to boost consumption facing slower revenue," he said.

Apart from the consumption and service sectors, a good performance was also seen in high value-added sectors such as equipment manufacturing and high-tech sectors, both of which were growing 3 percentage points faster than the average, statistics bureau data showed. Overall, energy consumption per GDP unit has declined by 4.3 percent from a year before.

Some technology-driven manufacturers, such as Guangdong Fivestar Solar Energy Co Ltd reported strong sales figures among poor export data.

Fivestar its saw sales jump by 15 percent in the first quarter. The solar heating system manufacturer was even more upbeat about growth this year by setting a 30 percent annual growth target, said Liao Yu, an official with the company.

"Our robust performance is backed by the strong research and development team that holds 115 world-leading patents," Liao said. "The cutting-edge heating technology has put us in the driver's seat, enabling us to take a tougher stance in international pricing and secure higher margins."

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks