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By Liu Tao, Institute of Market Economy, DRC

Research Report No.16, 2017 (Total 5091) 2017-2-13

Abstract: In 2016, with stable development foundation and enforced progress, China's service industry has shored up the three major demands of consumption, investment and exports. But it should be pointed out that at present, the growth momentum and the contribution to GDP of some service sectors have witnessed different fluctuations, service consumer demand is facing many constraints, the private investment in some industries with high degree of monopoly is decreasing, the service trade deficit has worsened and the employment picture of the service industry is not at all optimistic. In 2017, we need to continue to work to cut overcapacity and excess inventory, deleverage, reduce costs, and strengthen points of weakness and implement effective and positive fiscal policy measures to promote the development of service industry. Revitalizing the real economy is the requirement of and beneficial for the development of service industry, and the complicated world economic situation pose both pros and cons for the service industry and service trade development. Therefore, we need to deepen the supply-side structural reform, improve the supply capacity and efficiency of producer services, promote the service consumer demand and upgrading, lower threshold for market access of service industry and the innovation of service trade, expand the employment and entrepreneurship of service industry, and strengthen the survey on service consumption and other service industries, in order to promote the expanded and improved development of service industry.

Key words: service industry, prominent problems, influencing factors, policy options