Former China central bank official warns against miscategorising ‘virtual economy’
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Sheng Songcheng, former chief of the central bank’s statistics department, warns against miscategorising the 'virtual economy' in China. He emphasizes the importance of modern services, particularly producer services, in the country's push for new productive forces. China's service sector accounted for 54.6% of the national GDP last year, lower than the US's 81.2%. Sheng argues that high-end elements of manufacturing, including R&D, design, patents, branding, and sales, also fall into the realm of producer services. He calls for increased support for high-end producer services and the integration of service sectors with manufacturing. Beijing is seeking new growth sources for the economy and promoting home-grown innovation and tech-heavy strategies.
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