BEIJING, March 29 -- The all-inclusive guideline for accelerating growth in the country's lackluster tertiary sector, or service industry, provides the right recipe for China's shift in economic patterns.

    As the economy steams ahead with few signs of slowing, the concern is how to prevent it from growing too fast.

    The strain on energy supplies and the environment are two of the major factors that demand a more balanced growth pattern. Swelling exports and trade surplus, which have aroused international concern, mean we should consider rebalancing our economy.

    At the same time, unemployment has become a growing concern for policymakers, who have not seen a matching increase in jobs as the economy soars.

    We have tried to solve these problems. Manufacturers, for example, are required to abide by environmental rules and reduce energy consumption.

    Policymakers have, as the new guideline shows, found a new channel to help solve these problems in a more comprehensive way.

    The service industry may at first seem unrelated to these issues, but it is at the very heart of the solution.

    In 2005, China's service industry created 40.2 percent of its gross domestic product (GDP), about 30 percentage points lower than that of developed economies.

    While the sector has created twice the number of jobs as the manufacturing sector, the service sector will shift the growth of the economy from an industry-driven pattern to one that relies on domestic demand, reducing pressure on the environment and exports.

    In a traditional approach, some local policymakers have relied on the strategy of achieving economic growth through heavy industry.

    Given China's economic, environmental and social conditions, however, that strategy may not be an ongoing option.

    The State Council guideline is a vote against that strategy.

    As China's economy continues to rely on investment and exports, at least for now, achieving sustained growth of the service industry will not develop as rapidly as desired.

    But the service industry will become a major pillar of the Chinese economy as maturing growth gradually shifts to a more balanced pattern.

    (Source: China Daily)