A portrait of China's economic transformation: from manufacturing to services. Issue 1 (2nd January 2023)

• Record Type: Journal Article
• Authors: Zhang, Bin; Zhu, He; Zhang, Jiajia
• Is Part Of: China economic journal. Volume 16:Issue 1(2023)
• Page Start: 14
• Page End: 27
• Publication Date: 2023-01-02
• Subjects: Chinese economy -- economic transformation -- economic growth -- labor productivity; O14 -- O57 -- L80; Economic development -- China -- Periodicals; China -- Economic conditions -- Periodicals; China -- Economic policy -- Periodicals; 338.900951
• DOI: 10.1080/17538963.2023.2163463
• Languages: English
• ISSNs: 1753-8963

Abstract

ABSTRACT: The Chinese economy marked a turning point around 2010 to 2012, with economic growth, expenditure structure, industrial structure, and other macroeconomic indicators running counter to their earlier trends. There was a common cause behind all the changes: economic transformation from manufacturing to services. Starting with saturation in demand for manufactured goods, household consumption began to shift toward more human capital – intensive services, which led to a chain of effects in the industrial structure, slower economic growth, altered labor flows, as well as changes in the features of the business cycle. Compared with other high-income economies when they were at a similar development stage, China's economic transformation from manufacturing to services has been the standard practice.