The proportion of China's GDP derived from tertiary, or service, industries declined to 40.2 percent in 2005 from 41.7 percent in 2002. The index lags far behind the world average.

A report on Chinese the service industry released by the Chinese Academy of Social Sciences says the development of China's service industry is at disadvantaged position, even lagging behind other countries with similar personal incomes.

The GDP of service industry accounts for 60 percent of a country's total GDP on a world average. The percentage is 70 percent in developed countries and 43 percent even in countries with middle and low incomes.

The report says the growth of per-capita GDP can positively develop the service industry. But the reality of a huge income gap leads certain low-income earners to only be able to afford basic living consumption needs. Service demands are a luxury commodity for them. On the other hand, service industries targeting the wealthy in China have developed in an unhealthy way and the middle-class cannot get qualified service at reasonable prices. Though personal incomes have increased, the income gap blocks off the development of the service industry.

At present, the secondary industry plays a larger role in promoting economy growth than service industry. The development of the tertiary industry is not fast and stable as expected. China still has a long way to go to realize the dream of a "service-oriented" society.

(Xinhua News Agency January 23, 2007)