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Guangdong to focus on service sector

By Zhan Lisheng (China Daily)
Updated: 2008-07-29 08:00

GUANGZHOU - Guangdong province wants to boost the ratio of its service industry to about 50 percent of its GDP by the year 2012 and more by than 60 percent by 2020.

A blueprint to accelerate the construction of modern industrial system for the province was published Monday.

It will increase by 1 billion yuan ($160 million) from this year to 2012 its annual budget to support the development of its service industry and an advanced manufacturing industry

The service industry accounted for 42 percent of the province's GDP last year, while the industrial sector contributed 52 percent.

Guangdong relies heavily on manufacturing and exports. It is shifting to services as manufacturing is placing a huge demand on resources and labor.

The province will recruit professionals in various fields from home and abroad.

The province will also further develop the Pearl River Delta region into a modern industrial area by coordinating overall management.

It will also set up one or two pilot industrial parks this year to attract more investment to regions in the east, west and north of the province.

"Different from an industrial upgrade that highlights revamping of a traditional industry with high technology, the planning of the modern industrial system maps out an overall blueprint for the province's economic development," Xie Pengfei, deputy secretary-general of the provincial government and director of the provincial development research center, said.

"A new modern industrial system is urgently needed for Guangdong as the province, especially the Pearl River Delta region, has come to the late stages of its industrialization," Xie said.