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Modern service industry expands in Hangzhou
By Zhao Dan |
July 31, 2009, Friday
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Print Edition
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HANGZHOU'S industrial structure is being transformed, and for the first time the service industry becomes the city's lead.
For the first six months of the year, Hangzhou's service industry contributed more to the city's GDP than the manufacturing sector, occupying 48.7 percent of the total, the Hangzhou Bureau of Statistics reports.
Total GDP for the first half year was 221.8 billion yuan (US$32.3 billion). Statisticians point out, however, that not only has the service industry expanded, but the manufacturing sector has been reduced because of the global financial crisis.
Primary industry is considered agriculture, secondary industry is standard manufacturing and tertiary industry is the modern service industry (all the other sectors) that Hangzhou aims to develop.
This includes retail, banking, tourism, IT and so on.
In the first half of this year, the output value of tertiary industry represented 48.7 percent of GDP, while the primary industry was 3.5 percent and secondary industry was 47.8 percent.
The Hangzhou Bureau of Statistics reported that the value of primary industry was 7.72 billion yuan, for secondary industry it was 105.74 billion yuan and for tertiary/service industry it was 107.6 billion yuan.
Officials say the industrial structure is beginning to meet the standard in developed countries. They note that the proportion of each industry reflects the economic development of a country or city as well as living conditions of people in the area.
"Hangzhou's industrial structure will undergo further adjustment with the development of the modern service sector," says Zhang Shaohua, deputy director of the Service Industry Development Department of the Hangzhou Development and Reform Commission.
Zhao Wei, professor in economics at Zhejiang University, writes in his blog:
"The history of industrialized countries shows that industrial structure will be in the momentum of 3:2:1 (tertiary:secondary:primary) when the industrialization process is completed. This means tertiary industry becomes the lead and its scale exceeds that of the secondary and primary industries."
During industrialization, the significance of secondary and tertiary industries will also be transformed.
At the beginning, manufacturing increases consistently while in later stages the tertiary service industry plays a greater role, professor Zhao observes.
In Britain, the transformation of industrial structure occurred between 1840 and 1879, the earliest in the world. In the United States it took place from the late 1870s to the early 1880s, and the proportion of the tertiary industry rose to 71 percent in 1991. The transformation in Japan took place in the mid-1960s.
It is acknowledged worldwide that tertiary industry usually constitutes 70 percent of local GDP, a symbolic standard for developed countries.
The proportion of the tertiary industry has reached 95 percent in Hong Kong and in the United States it's more than 75 percent, says professor Zhao.
In China, the proportion of tertiary industry in Beijing reached 49 percent in 1994, exceeding that of secondary industry for the first time.
In Shanghai, the proportion of the service industry reached 51.4 percent in 2007, exceeding the manufacturing sector for the first time.
The same thing happened in Shenzhen, Guangdong Province, last year.
In the five districts in urban Hangzhou, the proportion has reached the symbolic standard, says Zhang, emphasizing that the proportion of the service industry in the downtown area has reached 85 percent.
The expanded service industry means more job opportunities, especially for new college graduates.
In developed countries, tertiary industry offers a huge proportion of job opportunities: 74.5 percent in the United States, 74 percent in France, 73 percent in the United Kingdom, 63 percent in Japan and 62 percent in Germany.
Officials in the Hangzhou Bureau of Statistics also point out that another factor in the changed proportions is the slowdown in manufacturing.
For the first six months of the year, Hangzhou's service industry contributed more to the city's GDP than the manufacturing sector, occupying 48.7 percent of the total, the Hangzhou Bureau of Statistics reports.
Total GDP for the first half year was 221.8 billion yuan (US$32.3 billion). Statisticians point out, however, that not only has the service industry expanded, but the manufacturing sector has been reduced because of the global financial crisis.
Primary industry is considered agriculture, secondary industry is standard manufacturing and tertiary industry is the modern service industry (all the other sectors) that Hangzhou aims to develop.
This includes retail, banking, tourism, IT and so on.
In the first half of this year, the output value of tertiary industry represented 48.7 percent of GDP, while the primary industry was 3.5 percent and secondary industry was 47.8 percent.
The Hangzhou Bureau of Statistics reported that the value of primary industry was 7.72 billion yuan, for secondary industry it was 105.74 billion yuan and for tertiary/service industry it was 107.6 billion yuan.
Officials say the industrial structure is beginning to meet the standard in developed countries. They note that the proportion of each industry reflects the economic development of a country or city as well as living conditions of people in the area.
"Hangzhou's industrial structure will undergo further adjustment with the development of the modern service sector," says Zhang Shaohua, deputy director of the Service Industry Development Department of the Hangzhou Development and Reform Commission.
Zhao Wei, professor in economics at Zhejiang University, writes in his blog:
"The history of industrialized countries shows that industrial structure will be in the momentum of 3:2:1 (tertiary:secondary:primary) when the industrialization process is completed. This means tertiary industry becomes the lead and its scale exceeds that of the secondary and primary industries."
During industrialization, the significance of secondary and tertiary industries will also be transformed.
At the beginning, manufacturing increases consistently while in later stages the tertiary service industry plays a greater role, professor Zhao observes.
In Britain, the transformation of industrial structure occurred between 1840 and 1879, the earliest in the world. In the United States it took place from the late 1870s to the early 1880s, and the proportion of the tertiary industry rose to 71 percent in 1991. The transformation in Japan took place in the mid-1960s.
It is acknowledged worldwide that tertiary industry usually constitutes 70 percent of local GDP, a symbolic standard for developed countries.
The proportion of the tertiary industry has reached 95 percent in Hong Kong and in the United States it's more than 75 percent, says professor Zhao.
In China, the proportion of tertiary industry in Beijing reached 49 percent in 1994, exceeding that of secondary industry for the first time.
In Shanghai, the proportion of the service industry reached 51.4 percent in 2007, exceeding the manufacturing sector for the first time.
The same thing happened in Shenzhen, Guangdong Province, last year.
In the five districts in urban Hangzhou, the proportion has reached the symbolic standard, says Zhang, emphasizing that the proportion of the service industry in the downtown area has reached 85 percent.
The expanded service industry means more job opportunities, especially for new college graduates.
In developed countries, tertiary industry offers a huge proportion of job opportunities: 74.5 percent in the United States, 74 percent in France, 73 percent in the United Kingdom, 63 percent in Japan and 62 percent in Germany.
Officials in the Hangzhou Bureau of Statistics also point out that another factor in the changed proportions is the slowdown in manufacturing.
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