China's service sector has become the primary engine of the country's economy, contributing 63.2 percent to overall economic growth in the first quarter of the year, up 4 percentage points from the same period last year.
Data show that in the first three months, the value added of China's service sector expanded 5.2 percent year on year to 20.61 trillion yuan (about 3.02 trillion U.S. dollars).
Specifically, the value added of information transmission, software, and information technology services, and leasing and business services grew by 10.6 percent and 12.2 percent, respectively.
Investment in high-tech services also accelerated, with fixed asset investment in the sector rising 12.3 percent year on year. Investment in professional and technical services surged 29.5 percent, information services increased 20.9 percent, and research and development and design services grew by 15.8 percent.
"The quality of service industry development has gradually shifted from traditional service formats to new service models. These new formats are deeply integrated with the manufacturing industry, which on one hand strongly supports the transformation and upgrading of the manufacturing industry, and on the other hand greatly improves the overall industrial structure," said Hong Qunlian, director of the Service Industry Research Office at the Institute of Industrial Economics under the National Development and Reform Commission, China’s top economic planner.
The first three months also saw the growing vitality in service consumption, with new business models and scenarios emerging.
In the first quarter, service retail sales increased by 5.5 percent year on year, 3.3 percentage points higher than the growth in goods retail sales.
Transaction volume on tourism, entertainment and services platforms rose 12.8 percent, while transaction volume on cultural service platforms increased 8.2 percent.