<b>Zhang Bin:</b> The way forward for the Chinese economy

A new engine of economic growth will require upgrading the manufacturing sector

As part of the cycle of economic development, all advanced economies have undergone industrialisation and post-industrialisation. Industrialisation involved the manufacturing sector’s focus on increasing GDP, employment rate and consumption of manufactured products. For China, the post-industrialisation phase implies economic activity will be concentrated in the service industry. 

Based on measures such as income level, the rate of growth of the manufacturing sector, employment rate and the consumption of manufactured products, China has passed the peak of industrialisation. If global experience is a guide, the peak of industrialisation happens when per capita GDP ranges between $8,000 and $10,000 (PPP based on