China shifting from nation of producers to consumersStaff writer ▼ | November 23, 2015
China is transformed from a nation of producers to a nation of consumers, said Stephen Roach, senior fellow of Yale University's Jackson Institute of Global Affairs.
Transformation Jackson Institute of Global Affairs
The old model, which fueled China's economy growth in the past three decades, is decelerating, while the new model is still in its incipient stage, he said.
And the gap is continuing to widen. Services activity grew 8.4 percent year on year in the first half of 2015, far outstripping the 6.1-percent growth in manufacturing and construction, according to an article written by Roach recently.
In 2014, the service sector contributed 48.2 percent to China's GDP, exceeding the combined 42.6 percent share of manufacturing and construction, according to the article.
The shift toward a services-based new model lifted the downside pressures in the manufacturing-based old model, he said.
During the meeting, Roach predicated that the service sector could account for 65 percent to 70 percent of China's economy in next 20 years. ■