January 2016

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the internals of the report suggest that China’s new growth engine – services and consumption – continued to perform strongly, managing to offset a slowdown in heavy industry, investment and trade, the areas that once powered China’s economy. According to the NBS, the nation’s tertiary industry – largely encompassing services – accounted for 50.5% of GDP in 2015, an acceleration of 2.4 percentage points on a year earlier and some 10.0 percentage points above secondary industries, the sector that up until recently was the largest component of China’s economy.

The growth of China's service sector - Business Insider

There is one caveat though, services are growing so strongly because prices are declining at a rate of 5% a year in much of industry. If one takes real measures (corrected for inflation), the adjustment from industry to services is much less pronounced.