Market Research Logo

China’s transition from manufacturing to services: Tertiary sector to become the backbone of the economy

China’s transition from manufacturing to services: Tertiary sector to become the backbone of the economy


The Chinese government has in recent years adopted policies actively encouraging the growth of its tertiary sector. These include reforms easing access to the Chinese market for foreign companies, as well establishing a fund which will assist companies in the services sector.

Overall, China’s percentage share of global GDP has risen from 4.6% in 1950 to more than 20% by 2016.

Emissions from factories and a growing middle class population that is increasingly able to afford fossil fuel driven vehicles instead of relying on bicycles for transport, means that pollution at certain times of the year exceeds 20 times the limit set by the World Health Organization (WHO) as to what it considers “maximum healthy exposure” to pollution.

One major way in which the Chinese government wants to move the country towards becoming a service oriented economy is by boosting the exports of services and thereby reducing reliance on manufacturing exports.


  • Explores how a manufacturing boom resulted in strong Chinese economic growth.
  • Explains the consequences of this growth, both positive and negative.
  • Covers the reasons why the Chinese government wants a transition away from manufacturing.
  • Explores how this transition is progressing.
  • Discusses how this transition will impact Chinese economic growth.
Reasons to buy
  • How did China's economic rise occur?
  • What were the consequences of this economic growth?
  • Why does the Chinese government want to reduce reliance on manufacturing and encourage transition towards services?
  • Will this transition result in strong double digit growth?

Strong GDP growth brings about immense changes in Chinese society
Chinese middle class the world’s largest as wages and urbanization continue to rise
Manufacturing key to strong historic growth yet consequences include heavy pollution
Transition from manufacturing to service oriented economy recieves government support
Demand for higher-end products, increasing wages and declining health increase calls for change
Government establishes $
Double digit rise in foreign funded companies indicates early success
Services will increasingly form the backbone of the Chinese economy
Tertiary sector now accounts for half of Chinese GDP
Export oriented services market will struggle to emulate high growth precedent set by manufacturing exports
Tertiary sector will become the backbone of the Chinese economy but will not provide the same growth the manufacturing sector provided in the past
Further Reading
Ask the analyst
About MarketLine

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report