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China to Emphasize Service Sector in Restructuring Plans

China will advance its strategic restructuring of its economic structure and tackle problems clagging economic growth so as to build a well-being society in the new century, according to the country's top economic planner Zeng Peiyan.

China's economy is expected to maintain a seven-percent annual growth rate and the per capita GDP (gross domestic products) will reach 9,400 yuan (US$1,140) by the year 2005, Zeng, minister in charge of the State Development Planning Commission, told chief executive officers and top managers of some 400 Chinese and overseas companies at the 2001 Asia-Pacific Economic Cooperation CEO Summit opening on Thursday.

To cope with some prominent problems in economic development, such as irrational structure of industries, poor competitiveness of enterprises, widening gap between the eastern and western regions, and low level of urbanization, China is accelerating the development of its service sectors, including information, finance, accounting, counseling, and legal service, while improving efficiency in agricultural and industrial production, he said.

By the year 2005, the contribution of the service sector to GDP will have accounted for 36 percent, compared with 33 percent at present. Meanwhile, the contribution of agricultural sector to GDP will fall to 13 percent from the current 16 percent, he said.

Infrastructure construction will remain a key measure to maintain economic development, Zeng said, adding that the construction of new highways and railway networks, power- generating facilities, and projects of oil and natural gas production will be conducted during the 2001-2005 period.

In order to narrow the gap between the eastern and western regions, which has emerged as a major problem for China, infrastructure projects for water conservancy, traffic, telecommunications, energy and urban construction will be launched in the underdeveloped western areas.

Urbanization drive is to be boosted in the future with rational planning for harmonious development of large and medium-size cities and small towns, he said.

(China Daily October 19, 2001)

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