Tertiary industry is becoming a new favored area for both public and private investment though China is still in the primary stage of industrialization.

"The service industry is drawing government investment because of the large number of employment opportunities that comes with it and the high technological content in some productive areas," China Daily Business Weekly reported on December 26,

The tertiary industry has been a main stimulator of internal demand, said Xu Jiangping, a director with the State Development Planning Commission (SDPC), given the fact that more than 95 percent of the products on the market have larger supplies than demands. He gave the figure based on an annual survey conducted by the SDPC and the National Bureau of Statistics involving more than 600 products.

Having offered quick returns with relatively small investment and little technology, the tertiary industry is also attracting more and more private investment, he added.

He further noted that China's tertiary industry is involved in the primary stage and often provides low-quality services at high prices. This kind of backward management is conditioned by China's present low level of urbanization.

Moreover, the tertiary industry is also expected to spur the economic development in western China since eastern China's industrialization and rapid economic growth have paved the way for the west to develop its tertiary industry, Xu Jiangping said. (China Daily)