Management, Marketing, Innovation and Internationalisation
Edited by John R. Bryson and Peter W. Daniels
Chapter 21: Growth and spatial development of producer services in China
The rise of producer services was observed in developed countries decades ago, but it is a relatively new phenomenon in China, where their rapid growth has occurred only since the mid-1990s. The service market in China used to be seriously constrained during the Maoist period according to the principles of a centrally planned economy. Although a market economy with ‘Chinese characteristics’ has been developed since the economic reform in 1978, the market for services has been heavily regulated and access by foreign services providers has been significantly restricted. During the last decade China has accelerated and deepened the pace of reform, particularly with reference to state-owned enterprises and integration with the global market. This has led not only to the dramatic expansion of the service sector, but also its ‘upgrading’ as a result of the rapid development of producer services.
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