Fast-growing sectors as the drivers of China’s growth

LI Xiaohua (李晓华) and LU Tie (吕铁)
Institute of Industrial Economics (IIE), CASS

Editorial Note:Since reform and opening-up kicked off in the late 1970s, China’s economy has boomed, led by impressive industrial growth. Rapid economic and industrial growth mainly derives from the push of fast growing sectors, whose growth rates can reach and even surpass 20%. This paper examines their growth, both overall and by sector, as well as their distribution, nature, growth momentum and impact on industrial growth and restructuring, presenting an overview on China’s fast-growing sectors.

Growth rates vary among different sectors that constitute the national economy. Some grow fast, some slow, and others are in recession. Over the past thirty years, China’s economy has grown at roughly 10% per year, thanks to the push of fast-growing sectors (industrial sectors in particular) that continued to grow at 20% and even 30% a year. The existence, number and growth of these sectors largely determine a country’s economic growth rate and are closely correlated to its industrial restructuring, transformation of growth pattern and people’s living standards. Research into fast growing sectors, therefore, is of great significance.