Bai Chong-en, dean of the School of Economics and Management at Tsinghua University, emphasizes that China’s future household consumption growth will largely stem from its service industries. Speaking recently, he highlighted the need to make these industries better, stronger, and bigger to meet the evolving demands of the population.
While acknowledging the importance of manufacturing, Bai suggests that solely expanding manufacturing isn’t the sustainable path forward. “We should make our manufacturing industries better and stronger, but not necessarily always bigger,” he stated. “China cannot rely too heavily on investment in manufacturing alone.”
Bai believes that focusing on the service sector—areas like healthcare, education, and technology—will not only drive economic growth but also improve the quality of life for citizens. By investing in and expanding these services, China can create a more balanced and resilient economy.
“Enhancing our service industries is essential,” Bai concluded. “It’s time to shift our focus and prioritize sectors that will support long-term, sustainable growth.”
Reference(s):
Bai Chong-en: China needs to make services better, stronger & bigger
cgtn.com
