President Xi Jinping has called for striving to break new ground in the high-quality development of China's service sector. He made the remarks in an instruction conveyed at a national conference on the service sector held in Beijing from Tuesday to Wednesday.

Underscoring demand-driven development, reform breakthroughs, technology empowerment as well as opening-up and cooperation, Xi called for carrying out capacity-expanding and quality-upgrading initiatives in the service sector.

Efforts must be made to advance producer services toward greater specialization and the higher end of the value chain, foster high-quality, diverse and accessible consumer services, and build more "China Services" brands, Xi said.

With the focus of the 15th Five-Year Plan (2026-30) on innovation-driven development, the country aims to vigorously develop scientific and technological services, strengthen digital and smart services, and promote the integrated development of manufacturing and services. By strengthening and improving modern logistics, financial services and business services, the smooth connectivity of all aspects of the economic cycle can be promoted.

The trend of upgrading the consumption structure and transforming the industrial structure will focus on key areas of production and life to continuously cultivate new growth points in the service industry, and enhance the level of intelligence, standardization, integration and international development of the service industry.

The efficient and appropriate provision of public services, and the innovative development of cultural and tourism services, will better meet people's needs for high-quality services for everyday life.

As the largest sector of the national economy, the service industry acts as a barometer of economic health and the quality of people's livelihoods.

Last year, the added value of China's service industry surpassed 80 trillion yuan ($11.71 trillion) for the first time, accounting for 57.7 percent of the country's GDP and contributing 61.4 percent to its economic growth. These figures reflect a modern industrial system that is undergoing profound transformation and upgrading.

Moreover, the service industry also serves as a major reservoir for employment. Amid economic ups and downs, it offers a diverse range of sectors with strong job-creation capacity. By the end of 2025, approximately 50 percent of employment was within the service sector.

From traditional sectors such as catering and accommodation to modern digital services and smart logistics, the development of the service industry is a critical measure of China's economic progress. Productive services are seen as boosters for upgrading the manufacturing industry. Sectors such as supply chain management, financial services, R&D design, and modern logistics are rapidly moving up the value chain.

Life services, meanwhile, function as the "umbrella" for meeting daily public needs. Emerging businesses such as telemedicine, smart elderly care and home services are reshaping lifestyles.

But despite the progress made, the supply of high-end services is still insufficient, there is a shortage of professional talent and the standard system is not perfect, hindering the sector's further development. Additionally, regional development imbalances and significant urban-rural gaps remain unresolved. All this requires the government to continue to deepen reform and advance opening-up to energize the service sector.

Necessary steps in this regard include further relaxing market access restrictions, optimizing the business environment, and aligning the service industry with international standards. Building a unified national market, removing local protections and eliminating industry barriers are also needed.

To that end, China should integrate with global markets, embracing an open and inclusive approach. Opening up the sector involves fostering an environment where innovation and competition can thrive.

China's service sector has steadily expanded in scale and continuously improved in quality and efficiency. Building on that, Chinese enterprises should cultivate more "China services" brands and enhance the sector's global competitiveness.