PMI points to modest expansion
picked up at a marginal pace.
Despite the pickup in demand, the growth pace in prices charged by services providers fell in November, while that for input costs remained solid and unchanged from October, which was not good for companies’ profits, Zhong said.
“Rising labor costs, house rents and meat prices this year have weighed on many catering businesses,” said Ha Nan, founder and CEO of Beijing Liushanmen Technology, which was set up in 2015 and focuses on providing an innovative type of catering supply chain service.
But Ha said the trend of rising labor costs has prompted mid and small-sized chain restaurants to contain costs by cooperating with his company, which centralizes and industrializes the production of semi-finished dishes for the restaurants.
Dong Dengxin, an economics professor at Wuhan University of Science and Technology, said the services sector is where new business models concentrate, underpinning the economy’s transition to innovation-based growth.
Official data showed the services sector accounted for 58.8 percent of China’s GDP growth in 2017. Tang Yao, an associate professor at Guanghua School of Management at Peking University, expected the number to further increase. “With this increase, the economy’s reliance on external demand will continue to drop,” Tang said.
The official PMI of the services sector also recorded solid expansion at 52.4 in November, 0.3 percentage point higher than the previous month.
Ouyang Shijia contributed to the story.
Contact the writers at [email protected]nadaily.com.cn
Leading Chinese ride-hailing player Didi Chuxing on Wednesday announced an organizational restructuring plan to boost safety and efficiency, amid mounting competition in the sector.
The company said in a post on its official WeChat account that it had appointed a chief information safety officer as well as a chief security officer, as part of its broader push to ensure safety for both drivers and passengers on its platform.
The reshuffle also includes new, enlarged units for emergency response and local government coordination, as well as an external advisory group, Didi said in its statement.
Moreover, the Beijing-based company will integrate its multiple types of relatively low-price and premium ride-hailing services into a single business group, which will invest resources to meet compliance standards, continuously create user value and strengthen its ride-hailing ecosystem.
“The new setup will also strengthen our safety and efficiency performance in the interests of the healthy and sustainable development of Didi as well as the broader industry,” the company added.
In a move to enhance its onestop platform for vehicle operations and car-owner services, Didi will also merge its Xiaoju Automobile Solutions with Asset Management Center to become a new comprehensive automobile solutions platform.
On top of running businesses such as used car transactions, auto sales, leasing and financing, car maintenance, and refueling and recharging, the new auto-solutions platform will also explore new operational and retail business models for its driver-partners.
Yang Xinzheng, an expert at the China Academy of Transportation Science, said China has been stepping up efforts to prevent severe accidents from happening in the country’ s ride hailing industry. The push by Didi to ensure safety is a good sign that the sector is shifting from the sole pursuit of fast expansion to quality growth, which is the key to ensuring sustainable development.
The overhaul of its corporate structure also comes amid renewed competition in China’s ride-hailing market. A string of automakers such as BMW AG and China’s largest carmaker, SAIC Motor, are entering the sector, in the hope of opting for diversified revenue streams.
In China, on-demand mobility services, including ride-hailing, were worth $15 billion last year, according to a report by Strategy&, a consulting firm under PwC.
The number is expected to grow by 33 percent annually to $201 billion in 2025, and $656 billion in 2030.