China's service retail sales fuels economic recovery: Deloitte China Executive

(ECNS) -- In the first seven months of this year, China's service retail sales increased by 20.3 percent year-on-year, significantly faster than commodity retail sales, according to the National Bureau of Statistics.

The service sector plays a crucial role in supporting China's economic recovery, and there is considerable growth potential for China's service industry in the future, Alan Wang, managing partner of Deloitte Northern Region told China News Service on Monday.

Data from China's Ministry of Commerce shows that in the first half of this year, the service sector accounted for 56 percent of China's GDP and contributed 66 percent to economic growth.

Additionally, more than 70 percent of foreign direct investment in China was directed towards the service industry.

Wang pointed out that the figures reflect the "undeniable support role" of the service sector in the economic recovery when he was interviewed at the 2023 China International Fair for Trade in Services (CIFTIS) in Beijing. He further pointed out that compared to China, the service sector in some developed economies accounts for as much as 70 percent to 80 percent of their GDP, implying that there is still significant room for growth in China's service industry.

Particularly, with the global tourism market only having recovered to about 80 percent of pre-pandemic levels, the momentum from the service sector will contribute to the sustained and healthy development of the Chinese economy, he said.

As one of the world's foremost advocates of globalization and opening up, China continues to intensify its efforts to open up its service sector, reduce restrictions on foreign investment access, and create opportunities for the global service industry through platforms such as the "Belt and Road Initiative” and the CIFTIS, which are dividends for companies around the world, he said.