Amid China’s quest to extract more economic potential, the world’s second-largest economy should strengthen inadequacies in the services sector as well as original innovation, urged a former high-ranking official known for his economic insights.
The underdevelopment in tertiary industries that serve manufacturers is sapping the growth momentum of subsectors from the digital economy to decarbonisation, said former Chongqing mayor Huang Qifan.
The lag is associated with underinvestment in zero-to-one innovation, which lead to technological breakthroughs or the reshaping of an industry, added Huang, who also worked as a senior official running Shanghai’s economy in the 1990s.
“[The underdevelopment in the producer service sectors] is a weak link in our economy, despite our strengths in agriculture and complete manufacturing sectors,” Huang, who served as mayor of the southwestern municipality of Chongqing from 2010 to 2016, told a seminar in Shanghai on Saturday.
“We must increase the weight of producer services and trade in services in our economy and foreign trade.”