Tertiary Industry Contributes More to GDP Growth

China's tertiary industry is expected to register an average annual growth rate of 8.2 percent by the end of the year, contributing more to the country's economic growth compared with four years ago.

A senior official with the State Development Planning Commission said today that some 47 percent of the country's GDP will come from the tertiary industry during the ninth Five-Year Plan period (1996-2000).

"Development of the tertiary industry is a significant part of China's ninth Five-Year Plan. Since 1996, the industry has continued to grow and many sectors in the industry have become new forces boosting the country's economic growth," said the official.

Latest statistics show that the added value of the tertiary industry increased by 660 billion yuan from 1996 to 1999, an annual increase of 8.18 percent. It accounted for 32.9 percent of the national GDP growth, up from 30.1 percent four years ago.

More than 10 million people have entered the tertiary industry during the same period, accounting for more than 60 percent of the country's total. Both first and second industries saw a fall in employment, down 0.4 and 0.5 percent respectively.

Experts predict that the tertiary industry will play an even more important role in attracting labor force and promoting economic growth in the coming years.

Fundamental reforms have been carried out in the industry during the period. The telecom sector broke its monopoly and is set to introduce an effective management method. The housing sector abolished the welfare housing system, and introduced regulations on opening second-hand housing market. China also allows insurance capital into the securities market.

Tourism and telecommunications also grew at an incredible speed. From 1996 to 2000, China earned US$14.1 billion and 283.1 billion yuan from tourism. There are 200 million phone subscribers in China, with 65 million mobile phone users.

(People's Daily 09/27/2000)