Economist Calls for Freer Service Sector in China

Home>>Business

Last updated at: (Beijing Time) Wednesday, October 23, 2002

Economist Calls for Freer Service Sector in China

The Chinese government should give the nation's service sector more freedom to ensure its rapid development, the China Daily on Wednesday quoted a Chinese economist as saying.

DISCUSSION

CHINESE

SEND TO FRIEND

The Chinese government should give the nation's service sector more freedom to ensure its rapid development, the China Daily on Wednesday quoted a Chinese economist as saying.

Gao Shangquan, director of the China Economic Restructuring Institute, said while the world economy is gaining momentum in service sector, China still lags far behind developed countries in this area.

Service sector, regarded as key to solving the unemployment problem in China, accounts for only 33.3 percent of the country's gross domestic product, while the average figure in developed countries hits 70 percent.

"The main reason for the slowness lies in the government's over-control of this sector," Gao told a national workshop on the service sector held Tuesday in Hangzhou, capital of east China's Zhejiang Province.

Gao said the government's excessive control results in administrative monopolies and stringent restrictions which prevents the industries from operating in line with market mechanism.

Gao said more enterprises should be allowed to enter the sector and competition should be encouraged to upgrade quality and lower prices for services and products.

Official statistics show 70 percent of the fixed assets in the service sector are state-owned.

To give the sector more freedom, market order should be established, administrative intervention should be avoided and relevant regulations should be adjusted, Gao said.

Questions?Comments? Click here

China to Open up Various Economic Sectors: Premier Zhu

Overseas Investors Eye China's Service Sector

Historic Achievements Gained in China's Science and Technology ( 18 Messages)

Powell Expects Improvement of US-China Relations ( 25 Messages)

China May Have More PhDs Than the US in 2010 ( 3 Messages)

China's Oil Security Faces Tests of War: News Analysis ( 23 Messages)

Economist on China's Sustainable Economic Growth ( 5 Messages)

President Jiang's Trip will Advance Sino-US Ties: Officials ( 6 Messages)