The Current Situation of China's Industrial Structure

The current situation of China's industrial structure is generally in line with the general law of industrial structure evolution. Since 1978, China's industrial structure has undergone several major transformations.

In the beginning, in 1978, China's industrial structure showed the pattern of "two, one, three", i.e., the secondary industry accounted for the largest proportion, while the primary industry and the tertiary industry accounted for a relatively small proportion. By 1985, the scale of the tertiary industry exceeded that of the primary industry for the first time, realizing the transformation from "two-one-three" to "two-three-one", and the proportion of the tertiary industry increased.

In 2012, the scale of the tertiary industry once again exceeded that of the secondary industry, becoming the leading industry driving the development of the national economy, and realizing the historic transformation from "two, three, one" to "three, two, one". Since then, China's industrial structure has gradually formed the pattern of "three, two, one", i.e., the tertiary industry has become the leading industry, and the primary industry and the secondary industry account for a relatively small proportion.

Particularly since the 18th CPC National Congress, China's economic development has entered a new stage, and the strategic adjustment, transformation and upgrading of the economic structure has been accelerated, with the ratio of China's three industries in 2019 standing at 7.1:39.0:53.9, and the "three-two-one" pattern of industries becoming more consolidated, with the comprehensiveness, coordination and sustainability of economic development significantly enhanced. The comprehensive, coordinated and sustainable economic development has been significantly enhanced.

At the same time, China is also facing some challenges. For example, the production capacity of most products has exceeded the market demand and there is a relative surplus. In order to avoid excessive competition, optimize the allocation of resources, adapt to the public's multi-species, multi-level demand, the trend of providing high-quality products and high-level services requires timely adjustment and optimization of industrial structure.

In addition, China's industrial structure and international competition are also facing challenges. After joining the WTO, the international competition faced by China's industries spread to the domestic market. In the emerging industrial areas have not yet formed the competitiveness of the traditional international division of labor brought about by the weakening of the comparative advantage of the situation, the optimization of the industrial structure is not only related to the international competitiveness of the products and enterprises, but also related to the national industry and even the security of the country's economic development.

Overall, the status quo of China's industrial structure is undergoing continuous adjustment and optimization, and needs to be constantly adapted to market demand and international competition in order to achieve a higher level of development.