SZ's advancements in services set to complement manufacturing might

Shenzhen's efforts in accelerating the growth of the service sector are conducive to encouraging the in-depth integration of advanced manufacturing and modern service industries and developing new quality productive forces, thus giving a boost to the city’s pursuit of high-quality development, experts said.

Shenzhen held a conference centered on accelerating the high-quality growth of the service industry Monday, drawing a roadmap for the development of the city’s service industry with the goal of building a modern industrial system that highlight Shenzhen’s characteristics and strengths.

“In light of Shenzhen’s reform and opening-up journey that spans over four decades, the city’s development is closely related to innovation, talent, and internationalization, all of which are inseparable from the high-quality development of the service industry,” Xia Wenbin, a member of the advisory committee of the Ministry of Commerce, told Shenzhen Special Zone Daily.

Xia, also a chair professor at the Political Education and Research Center of the Southern University of Science and Technology, pointed out that Shenzhen, as a manufacturing powerhouse, requires the integrated development of manufacturing and service industries to find new growth drivers for high-quality development.

According to official statistics, Shenzhen’s added value of industrial enterprises above designated size, referring to those with an annual revenue of at least 20 million yuan (US$2.78 million), increased by 6.2% year on year in 2023. The city achieved “double firsts” in the total industrial output and total value added of industrial enterprises above designated size in China for two consecutive years.

“Accelerating the high-quality development of the service industry is not only to meet the needs of citizens for a better life, but also to achieve mutual enhancement of industry and technology, promote new industrialization, and cultivate new quality productive forces,” said Wei Fulei, director of the Research Center for Finance, Taxation, Trade, and Industrial Development at the China Development Institute.

Wei stated that the service industry can be divided into the lifestyle service industry and the productive service industry, both of which have a strong foundation in Shenzhen despite some limitations.

Xia believes that opening up is an important type of support for the high-quality development of the service industry.

He advised Shenzhen to take advantage of the opportunities presented by the Regional Comprehensive Economic Partnership Agreement (RCEP) for the development of the service industry, establish a negative list for foreign investment in the service field as soon as possible, and attract top-tier foreign-funded service companies.

“In the process of going global, enterprises need the support of professional services in finance, taxation, law, and intellectual property,” said Wei, who proposed pooling globally competitive business services in coopeartion zones like Qianhai to empower businesses in their globalization efforts.