Pillar 4: Services

Services must become the fourth cornerstone of China’s future growth and wealth. As history has shown, an economy hoping to progress from exports and infrastructure must make services a major part of wealth creation.

To that end, China is advancing the FIRE + H industries ( Finance, Insurance, Real Estate + Healthcare) but this pillar may be the hardest, though most important, to achieve.

For consumption to continue growing, a comprehensive healthcare system must evolve further. For those with expendable income, not only must they be able to buy products, but they also need to put their money to work for them. This capital investment system allows Chinese citizens to grow their wealth and will give innovative companies the capital they need to grow. The real estate sector in China has been a highlight of the economy in recent years, but there is a need for Chinese capital to flow into other areas of the service economy.

China’s economy is now tied to the global economy and its growth is not only tied to the improvement of the lives of Chinese citizens, but key to global growth. As it stands today, China accounts for around 30 percent of global economic growth.

China can transform and build on the “miracle” by focusing on the four pillars of modern growth: consumption, technology, advanced manufacturing and services. If the past is a guide to the future, I believe the “unimaginable” will continue to be the reality in China.