China's Fifth Economic Census Reveals Growth in Services and Tech Sectors

China’s fifth national economic census has painted a comprehensive picture of the nation’s economic transformation, revealing significant structural changes across its industrial landscape through 2023.

The service sector has emerged as a primary engine of growth, with tertiary industry value-added accounting for 56.3% of GDP, marking a two percentage point increase from 2018. This shift reflects China’s successful transition toward a more consumption and service-oriented economy.

Manufacturing remains robust, with China maintaining its position as the world’s largest manufacturing nation for the 14th consecutive year. The census reveals particularly strong performance in strategic emerging industries, with new energy vehicles seeing a remarkable 690% increase in production compared to 2018, accounting for over 60% of global output.

High-tech manufacturing has shown impressive development, with the number of high-tech manufacturing enterprises increasing by 57.4% compared to 2018. These companies demonstrated strong innovation capabilities, with R&D spending rising by 95.6% over the five-year period.

The digital economy has become a crucial growth driver. By the end of 2023, China had 2.916 million core digital economy enterprises employing 36.159 million people. The sector generated impressive operating revenue of 48.45 trillion yuan, spanning digital product manufacturing, digital product services, digital technology applications, and digital factor-driven industries.

Regional development patterns show continued economic strength in eastern China, which hosts 53.9% of all secondary and tertiary industry legal entities. However, central and western regions have shown encouraging growth, indicating progress in balanced regional development.

The census also highlights the transformation in employment patterns. While secondary industry employment showed some decline, tertiary industry employment increased by 25.6%, adding 54.01 million jobs since 2018. This shift reflects the economy’s modernization and upgrading.

Notably, the census demonstrates China’s growing emphasis on innovation and technology. Patent applications from large-scale high-tech manufacturing enterprises increased by 67.9% compared to 2018, with invention patents showing particularly strong growth at 72.5%.

These findings confirm China’s continued economic transformation, with technology, innovation, and services playing increasingly central roles in driving growth and development. The census data suggests China is successfully executing its strategy of high-quality development while maintaining its position as a global economic powerhouse.