Globally, as industries divide labor more deeply and integrate faster, leading manufacturers are broadly shifting toward service-oriented manufacturing, drawing on strengths in information, finance, R&D and design to dominate the construction of global value chains. Producer services play an increasingly prominent role in production networks, and largely determine whether product value can extend toward both ends of the "smile curve."

　　As the world"s largest manufacturing nation, China still sees producer services account for less than 35 percent of GDP in value added, leaving gaps in scale, quality and efficiency compared with advanced international levels. Upgrading the service sector is key to moving from a manufacturer of quantity to one of quality.

　　II

　　In building more "China Services" brands, tailoring measures to local conditions and applying targeted policies is the basic methodology.

　　Underscoring demand-driven development, reform breakthroughs, technology empowerment as well as opening-up and cooperation, Xi called for carrying out capacity-expanding and quality-upgrading initiatives in the service sector.

　　The service sector spans many categories and takes many forms; its subsectors differ in their levels of development and the challenges they face.

　　Start with producer services, these must serve enterprises across the full span of production and operations, with the aim of firmly supporting industrial transformation and upgrading by shoring up weak links along the entire chain.

　　Among these, the deep integration of advanced manufacturing and modern services — the so-called integration of the two sectors — is one of the core propositions of current industrial policy. For a long time, manufacturing and services have operated on parallel tracks, belonging to different policy systems, statistical classifications and regulatory frameworks.