Abstract:

Manufacturing is the cornerstone of a nation's strength and the foundation for its rejuvenation. Advancing Chinese modernization necessitates maintaining an appropriate proportion of manufacturing in the economy. However, China has now entered a new phase characterized by rapid growth in service consumption and the swift expansion of the service sector, which has led to certain misconceptions about the decline in the proportion of manufacturing. In reality, China has not yet reached the inflection point where the proportion of manufacturing should decline. The growth in service consumption is insufficient to cause a decrease in the share of manufacturing; the fundamental reasons for this decline lie in the changes in both supply and demand faced by China's manufacturing sector. The development of the service sector can, in fact, promote the maintenance of an appropriate proportion of manufacturing. Lifestyle services can drive the development and transformation of manufacturing through intermediate demand, while, under regulations that promote the standardized and healthy development of the platform economy, producer services can further enhance the competitiveness of manufacturing by enabling technological and efficiency improvements. Therefore, it is essential to stimulate the endogenous dynamism of service consumption through innovation and to promote industrial integration and mutual reinforcement. First, enrich the variety of service offerings and optimize the quality of service supply to create effective demand through high-quality services, thereby expanding the domestic demand space for manufacturing. Second, accelerate the development and application of modern applicable technologies, and foster new forms of service consumption, primarily digital consumption, to lead and drive the transformation and upgrading of manufacturing. Third, promote the in-depth integration of advanced manufacturing and modern services, accelerate the servitization of manufacturing, and further enhance the added value of manufacturing. Fourth, adapt to the laws of platform economic development, promote its standardized and healthy growth, and effectively protect the legitimate rights and interests of participants in the platform economy.

Key words: appropriate proportion of manufacturing, service sector development, lifestyle services, digital consumption, producer services